By CHAN HO-HIM and MATT OTT AP Business Writers
U.S. markets are mixed early and oil prices are rising modestly as Iran and the U.S. launch fresh attacks in the Middle East, threatening a fragile truce.
Futures for the S&P 500 rose 0.1% before the opening bell Thursday, while futures for the Dow Jones Industrial Average fell 0.1%. Nasdaq futures were up 0.5%.
The United States launched more airstrikes on Iran, and Iran responded by firing at Bahrain, Kuwait and Qatar, a day after President Donald Trump said a temporary ceasefire was “over.” The prospects for a lasting peace are up in the air with high-level talks to end the war still underway, according to a regional intelligence official involved in the mediation efforts who spoke on condition of anonymity.
Oil prices inched up againThursday, with Brent crude, the international standard, rising 64 cents to to $78.66 per barrel. It briefly topped $80 on Wednesday. Before the Iran war began, Brent oil was trading at around $72 a barrel. Earlier optimism over an interim peace deal recently brought it back to prewar levels.
Benchmark U.S. crude rose 54 cents to $74.06 a barrel.
A steady decline in gasoline prices has reversed this week and the cost for a gallon jumped a nickel overnight, according to motor club AAA. Prices have risen for two days, wiping out a week of declines.
The average price for a gallon of regular gasoline was $3.85 Thursday, according to AAA. That’s 69 cents more per gallon than at this time last year.
In equities markets, PepsiCo shares ticked down 1% after the drink and snack giant reported stronger-than-expected second quarter revenue despite weaker demand in North America, where it said consumers tightened their budgets due to economic concerns.
Earnings season ramps up next week when many of the biggest U.S. banks and airlines report their latest quarterly results.
Coming later Thursday are the government’s weekly report on layoffs and June home sales data from the National Association of Realtors.
Elsewhere, at midday in Europe, Britain’s FTSE 100 fell 0.7%, France’s CAC 40 rose 0.3% and Germany’s DAX traded 0.1% higher.
Tokyo’s Nikkei 225 reversed some of its losses from earlier in the week, gaining 1.4% to 67,743.85. Chip equipment maker Tokyo Electron jumped 5.5%, and artificial intelligence-focused investment holding firm SoftBank Group slipped 0.1%.
South Korea’s Kospi index zigzagged and ended 0.6% higher at 7,291.91 despite falling earlier in the day. Samsung Electronics was up 0.2% on Thursday, while memory chipmaker SK Hynix gained 5.3%.
The Shanghai Composite index traded 1.7% higher at 4,036.59, even as China’s producer price index rose 4.1% in June compared to a year earlier. That was higher than May’s 3.9%, as some economists attribute higher inflation to impacts from the Iran war.
Hong Kong’s Hang Seng shed 0.7% to 24,030.18. Shares of Apple supplier Luxshare fell 1.6% in its trading debut in Hong Kong. Chinese AI company Zhipu, or Z.ai, surged 11.3% after it said it’s raising about $4 billion through a share sale.
Australia’s S&P/ASX 200 shed 0.3% to 8,762.50.
Taiwan’s Taiex fell 0.8%, and India’s Sensex climbed 0.6%.