Shares of energy companies fell as fears of a full-scale war between Israel and Iran subsided somewhat.

Israel reserved the right to respond to a barrage of missile and drone attacks from Iran on its own schedule. Traders were relieved that the attack did not immediately trigger reprisals, however. One strategist said a countervailing force on oil markets was the recent spike in the value of the dollar, which is related to the likelihood that other global central banks will cut rates before the Federal Reserve.

"That means the U.S. dollar is likely to gain vis-à-vis all these other currencies," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "Think about commodities, and especially oil, being dollar-denominated. It takes fewer dollars to buy it. Now think about geopolitics, and we're in the mid $80s to $90 in crude ... think where that could be under a weaker dollar scenario."

Write to Rob Curran at

(END) Dow Jones Newswires

04-15-24 1743ET