Oil prices back up and stock markets cool down as Iran ceasefire optimism dissipates

Oil prices rebounded Thursday and stock markets were flat or slightly lower in Asia as the dispute over the Iran war ceasefire revived concerns that the conflict could reignite, and as investors assessed the likely lingering effects of damage already done to the global economy.

Despite President Trump's insistence, there was little indication that oil and other commodities would start moving freely again through the Strait of Hormuz, as Iran kept its grip on the vital waterway. 

"You have a fifth of the world's oil supply moving through a corridor that is still effectively under the influence of one of the parties to the conflict," Nigel Green, CEO at the deVere Group financial firm told the Reuters news agency. "That's not stability."

That lack of certainty pushed U.S. crude futures back up 3.1% to $97.33 a barrel early Thursday, as global benchmark Brent Crude inched back up more than 2% to trade around the $98 mark.

In Asia, which gets much of its energy directly from the Persian Gulf, stock prices slumped Thursday after a sharp spike the previous day on optimism over Mr. Trump's initial ceasefire announcement. Japan's Nikkei was largely flat, South Korean shares dipped 0.4%, Chinese blue chips slipped 0.6%, and MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.7%, according to Reuters.

Wednesday's surge also looked definitively over on Wall Street, with S&P 500 futures and Nasdaq futures both down about 0.2% early Thursday.

Oil prices have been up and down in recent weeks, but overall, since the U.S. and Israel launched their war on Iran, they are up about 40%, and analysts say that will drive up prices for a wide range of consumer goods and services for months to come.