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Stocks clawed back earlier losses and briefly turned positive on Thursday as investors grew hopeful that traffic in the Strait of Hormuz would begin flowing again.
The Dow Jones Industrials index remained negative 155.78 points to 46,450.86.
The S&P 500 index came to within 5.3 points to 6,570.02.
The NASDAQ removed 26.95 points to 21,814.
At their lows of the session, the Dow was down more than 600 points, or 1.4%, while the S&P 500 and NASDAQ were down 1.5% and 2.2%, respectively.
The three major indexes ripped higher after Iranian state media said that the Middle Eastern country is working with Oman on a protocol to “monitor” ships passing through the Strait of Hormuz.
His comments led to a surge in oil prices. West Texas Intermediate crude futures were last up 11% at above $111 per barrel, while Brent crude futures advanced 7% to above $108 a barrel.
Major cruise operators tumbled after President Donald Trump’s speech failed to outline a clear path to end the war in Iran, leading oil prices to surge and reigniting demand fears. Carnival, Royal Caribbean and Norwegian Cruise Line all fell about 4%.
Higher oil prices also sent airline stocks tumbling, with Delta Air Lines, United Airlines, Southwest Airlines and Alaska Air all fell about 4%
Prices for the 10-year Treasury gained ground, weighing on yields to 4.31% from Wednesday’s 4.33%. Treasury prices and yields move in opposite directions.
Oil prices gained $11.92 to $112.04 U.S. a barrel.
Gold prices tailed off $132.90 to $4,603.20 U.S. an ounce.
