Stocks slip as Hormuz concerns keep oil high

Global stocks mostly slipped Monday as concerns over the Strait of Hormuz and high oil prices outweighed expectations that the Federal Reserve would not raise US interest rates soon.

Oil prices edged higher as the United States and Iran showed no sign of reaching a deal to reopen the Strait of Hormuz to shipping traffic. At around 1340 GMT, Brent North Sea crude was up 0.3% at $88.78 a barrel, while West Texas Intermediate was up 0.1% at $82.48.

In early New York trading, the Dow was down 0.3% and the S&P 500 was down 0.1%, while the Nasdaq Composite was up 0.1%. London, Paris and Frankfurt were all lower in midafternoon European trading.

David Morrison, an analyst at Trade Nation, said traders were watching the US-Iran standoff and that diplomatic gridlock over transit through the strait had kept crude prices elevated.

Patrick J. O'Hare, an analyst at Briefing.com, said markets had kept some confidence that diplomacy would prevail and that oil prices would not trigger a global recession.

Asian markets were mixed. Hong Kong, Shanghai, Taipei and Tokyo rose, while Seoul was closed for a holiday. The dollar continued to slip against major currencies after falling Friday in reaction to recent economic data.