By CHAN HO-HIM and MICHELLE CHAPMAN AP Business Writers
U.S. futures are slightly higher and hovering near record highs while oil prices declined after President Donald Trump said that officials from the United States and Iran met on the sidelines of the U.N. General Assembly in New York this week.
Futures for the S&P 500 and Dow Jones Industrial Average both gained 0.1% on Wednesday. Nasdaq futures were basically flat.
Trump talked of the meeting with Iran after telling the assembly Tuesday that he would have to make a choice, including whether to “annihilate” the Islamic Republic, if the sides fail to reach an agreement.
“I have a big decision to make,” Trump said. “Will a deal be made with Iran that lets them rebuild and create a far greater country than it ever was before, maybe one of the greatest in the Middle East or even the world. Or do I annihilate the Islamic Republic and do it quickly, never giving them a chance to kill and destroy people and countries again?”
Brent crude, the international standard, dipped 0.3% to $98.99 per barrel. That is still elevated compared to the roughly $72 per barrel level from late February before the Iran war, and still about $30 more than at this point last year. Benchmark U.S. crude dropped 1.1% to $89.84 per barrel.
In addition to Trump’s reference to communication with Iran, ING commodities strategists Ewa Manthey and Warren Patterson said oil prices are also easing due to reports that Saudi Arabia was working to restore its east-west pipeline, which was disabled in an attack. The pipeline is crucial to getting some crude out of the Middle East by shipping it to the Red Sea rather than through the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil supply passed before the U.S. and Israel attacked Iran in February.
Investors are also focusing on Chinese President Xi Jinping’s state visit to Washington, which is kicking off Wednesday and his meeting this week with Trump, in which artificial intelligence is anticipated to be high on the agenda.
The leaders are expected to attempt to steady fragile ties in their third meeting since Trump returned to the White House. That is despite the world’s two largest economies seeking the upper hand on AI developments and trade, while pushing for leverage in persistent hot spots like Iran and Taiwan.
In Europe, Britain’s FTSE 100 edged up to 10,712.19. France’s CAC 40 slipped 0.1% to 8,146.73, while Germany’s DAX declined 0.4% to 25,473.41. Asian markets were mixed.
Japan’s Nikkei 225 was closed on Wednesday for a holiday and will resume trading on Thursday.
The U.S. dollar rose to 157.82 Japanese yen from 157.39 yen. The euro was trading at $1.1412, down from $1.1449.