US Futures Rise as Oil Prices Eased Amid Middle East Clashes
US futures rose on Friday despite intensifying clashes in the Middle East and ahead of the highly anticipated inflation report. The S&P 500, Dow Jones Industrial Average, and Nasdaq all saw a 0.6% increase.
The Houthi rebels' capture of a strategic island in the Bab el-Mandeb Strait has further threatened oil exports through one of the world's key commercial lanes. Saudi oil production fell to a three-decade low last month due to Houthi attacks on its energy facilities, according to the International Energy Agency.
Oil prices eased on Friday but are up around 8% for the week on renewed fighting. Brent crude was 3.6% lower at $103.74 per barrel after earlier rising above $108. Benchmark US crude fell 3.4% to $99.02, days after racing above $100 for the first time in months.
Diesel prices soared to an all-time high above $6 a gallon on average, which could have an outsized impact on inflation due to its prevalent use in transportation, shipping, and manufacturing.