According to MarketWatch, as of 8:38 a.m. Korean time on May 18, West Texas Intermediate (WTI) crude oil futures for June rose nearly 1.75%, surpassing $107 per barrel. At the same time, July Brent crude futures also increased by 1.14%, exceeding $110.
This rise follows the conclusion of President Donald Trump's visit to China over the weekend, which ended without significant breakthroughs, and the ongoing stalemate in negotiations to end the war with Iran. Previously, on May 15, WTI futures had crossed the $105 mark, while July Brent futures closed the week up 8%, finishing above $109 per barrel.
Amid the persistent Middle East crisis, U.S. stock index futures are showing a downward trend. Currently, Dow Jones Industrial Average futures are down 112 points (0.23%) at 49,505.00, S&P 500 futures are down 10.25 points (0.14%) at 7,422.00, and Nasdaq 100 futures are down 37.75 points (0.13%) at 29,194.00.
As a fragile ceasefire between the U.S. and Iran holds, tensions surrounding the Strait of Hormuz persist. The Associated Press reported that Israel is coordinating with the U.S. regarding the potential resumption of airstrikes against Iran.
On the same day, President Trump used social media platform Truth Social to pressure Iran to agree to a peace deal. He stated, "Iran doesn't have much time," warning that they should act quickly or risk losing everything.
Additionally, reports of a fire near the Barakah nuclear power plant in the United Arab Emirates, suspected to be caused by a drone attack linked to Iran, have heightened market anxiety. The UAE authorities confirmed that there was no impact on the reactor and that the plant is operating normally. The Barakah plant is also notable as the first commercial nuclear power plant in the Middle East, built by Korea Electric Power Corporation.
MarketWatch highlighted that the ongoing conflict is driving up global oil and gas prices, raising inflation concerns. According to the American Automobile Association (AAA), the average price of gasoline in the U.S. is currently $4.51 per gallon. The consumer price index (CPI) for April also rose to 3.8%, marking the highest increase since May 2023.
Meanwhile, investors are closely watching the upcoming earnings reports from major U.S. retailers such as Walmart, Target, Home Depot, and Lowe's this week. The impact of high fuel prices and inflation on consumer sentiment could be reflected in these results. Walmart executives previously warned that retail sales could be affected if gasoline prices reach between $4.50 and $5 per gallon.
Additionally, investors are keeping an eye on Nvidia's quarterly earnings report scheduled for May 20. As the rally in artificial intelligence (AI) stocks continues, Nvidia's performance is seen as a key indicator for investor sentiment in the tech sector.
* This article has been translated by AI.
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