Oil prices bounce around

Helped by the ongoing ceasefire between the U.S. and Iran, as well as the possibility of more talks this weekend, West Texas Intermediate crude-oil prices have declined 16% from their April 7 closing high near $113 per barrel. Not that the May 7 price of $95 per barrel feels cheap.

On Feb. 27, before Israel and the U.S. attacked Iran, oil cost $71.48 per barrel. Even after the recent decline, oil remains 33% above preconflict levels.

The ceasefire announced April 7 released some of the pressure on energy prices, though Iran’s continuing efforts to control traffic through the Strait of Hormuz and America’s resultant naval blockade suggest the juggler still has a lot of balls in the air. Financial markets dislike uncertainty, and the Mideast situation remains far from settled.

That said, while oil prices matter to the stock market, as well as to the economy, they remain just one of many drivers. We will keep an eye on energy prices, as well as those other drivers.