Shares of energy companies ticked down alongside oil futures despite an escalation of warfare in the Middle East.
Three U.S. service members were killed and at least 34 were injured in an Iran-backed militia's drone strike on a base in northeast Jordan, U.S. officials said on Sunday, marking the first American troops killed in hostile action since the start of the Hamas-Israeli conflict in Gaza.
The Biden administration vowed to respond to the attack. Oil futures fell for the first time in four sessions, as investors apparently shrugged off the risk of further escalation.
"After numerous attacks on now attacks on service members, one would assume, in a normal environment, energy prices would be skyrocketing right now," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
It's unlikely that oil markets can cast a blind eye on mounting Middle East tensions for much longer.
The principal "upside risk for the oil market is if tensions in the Middle East spread, which starts to have an impact on oil production or cuts off oil flows that cannot be rerouted," said Warren Patterson head commodities strategist at brokerage ING, as reported earlier.
U.S. natural gas futures plunged 8.2% to $2.49 per million British thermal units because of mild weather forecasts.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-29-24 1710ET
