LONDON: Stock markets were mixed and oil prices steady on Friday, with investors cautiously optimistic that the US-Iran ceasefire would hold and that a US inflation report was not as bad as feared.

A cloud of uncertainty hung over the scheduled start of talks in Pakistan this weekend to turn a shaky two-week truce into a lasting accord that would reopen the key Strait of Hormuz.

But there has been no announcement yet of the negotiators’ arrival, and both sides have accused the other of failing to properly implement the ceasefire.

“Investors remained cautious as they kept a close eye on developments surrounding the fragile ceasefire between the US, Israel and Iran,” said David Morrison, an analyst at Trade Nation, adding that investors were pausing “to catch their collective breath heading into the weekend”.

Investors cautious ahead of Islamabad talks

The main international oil contracts were up around one per cent, holding just under $100 a barrel even as only a trickle of tankers have so far transited the Strait of Hormuz, where a fifth of the world’s oil passes in normal times.

Some two hours into trading on Wall Street, the main US indices were mixed, with the Dow off 0.3pc while the broader S&P 500 and the tech-heavy Nasdaq were barely in the green.

In Europe, London and Frankfurt closed virtually flat as Paris added 0.2pc.

New York shares had rebounded late Thursday on news that Israel and Lebanon had agreed to talks, upping the chances for the ceasefire after five weeks of fighting.

But despite this week’s rebound, stock markets remain lower and oil prices significantly higher than before the war — though oil was flat Friday after weeks of gyrations.

Investors were also watching US inflation and interest-rate prospects in the world’s largest economy as the Gulf War sent economic shockwaves through myriad sectors.

US consumer prices rose 3.3pc in March from a year earlier, according to data released Friday. While that was up sharply from the previous month as gas prices surged, it was below what some economists expected.

White House spokesperson Kush Desai responded by saying the US economy “remains on a solid trajectory.” Core inflation, which strips out volatile categories like food and energy, rose 2.6pc from a year ago, again lower than what some analysts had feared.­

Published in Dawn, April 11th, 2026