Shares of energy companies fell amid anticipation of a reopening of the Strait of Hormuz.
Iran and Oman are reportedly close to a deal that would see shipping resume after a near six-month interruption, with Tehran maintaining some level of control.
"The instability of every prior agreement, with ceasefires violated by both sides, and the possibility of post-election escalation will likely prevent the market from ever fully pricing a permanent normalization of the Middle East, while the risk of fresh escalation, as we saw in early July, remains alive," said Lorenzo Di Mattia, chief investment officer of hedge-fund firm Sibilla Global.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
