US sharemarkets ended lower on Thursday, trimming earlier losses as investors continued to monitor developments in the conflict with Iran. The S&P 500 fell 0.27% to close at 6,606.49, while the Nasdaq Composite declined 0.28% to 22,090.69. The Dow Jones Industrial Average dropped 204 points, or 0.44%, to finish at 46,021.43.
Markets recovered from deeper losses earlier in the session, when the Dow had fallen nearly 500 points, as investors responded to shifting headlines around the conflict.
Oil remains elevated amid supply disruption concerns
Energy markets remained the key focus. Brent crude settled 1.2% higher at US$108.65 a barrel, its highest close since July 2022, while West Texas Intermediate crude edged slightly lower to US$96.14.
Shipping through the Strait of Hormuz has been severely disrupted since US-Israeli strikes on Iran in late February, keeping pressure on global energy markets. Oil prices briefly surged toward US$120 a barrel earlier in the session following attacks on key energy infrastructure in the region before easing later in the day.
Prices pulled back after comments from Israeli Prime Minister Benjamin Netanyahu suggested efforts were underway to help reopen the strait and avoid further attacks on energy facilities.
Ongoing conflict clouds outlook
Investor sentiment remains sensitive to developments in the Middle East, with uncertainty around how quickly shipping through the Strait of Hormuz can resume.
The conflict is approaching its fourth week, raising concerns that energy prices could remain elevated for longer and continue to weigh on inflation and growth.
Technology stocks were mixed, with some semiconductor names easing as investors took profits following recent gains.
Australian market outlook
Australian shares are expected to open slightly lower, with ASX 200 futures down 5 points, or 0.1%, to 8,530 after paring earlier losses.
Locally, there are no major Australian data releases scheduled. Across the region, New Zealand will release February trade data, while the Bank of Japan is due to hold its latest policy meeting.
