Oil prices rise above $100, North American stock market holds steady as U.S.-Iran tensions continue

Oil prices are back above $100 US per barrel after 21 hours of ceasefire talks failed to end the war with Iran. But North American stocks are nevertheless holding steady in an indication that Wall Street still sees a chance for both sides to avoid a worst-case scenario for the global economy.

The S&P 500 was virtually unchanged in morning trading after erasing an earlier dip. The Dow Jones Industrial Average was down 256 points, or 0.5 per cent, as of 11:45 a.m. ET, and the Nasdaq composite was 0.3 per cent higher.

In Canada, the S&P/TSX composite index was up 2.30 points at 33,698.06.

The oil market showed more concern, as prices there jumped roughly six per cent. The moves were more modest than the extreme swings that have been hitting financial markets since the war began in late February.

After the weekend's talks failed, U.S. President Donald Trump vowed to blockade the Strait of Hormuz.

A blockade would keep even more oil off the global market, after prices already jumped worldwide because of shortfalls due to Iran's restrictions on traffic in the important strait. That narrow waterway is how much of the oil produced in the Persian Gulf area reaches customers worldwide. Iran immediately responded with threats on all ports in the Persian Gulf and the Gulf of Oman.