New York (AFP) – Oil prices rose to multi-month highs while global stocks mostly retreated as markets weighed sharpening rhetoric from President Donald Trump on Iran suggesting a military strike was more likely. Brent oil futures finished up nearly two percent at $71.66 a barrel after earlier reaching its highest level since July.
“Oil is extending its gains, with Brent crude back above $70 a barrel…as fears of a military confrontation between the US and Iran rattled energy markets,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “Nuclear talks between the two sides appear to be going nowhere fast, and the geopolitical premium is clearly back in play,” he added.
Worries about Iran also dogged Wall Street, where major indices struggled in the red throughout the day. “It seems like markets are getting more nervous about a potential strike on Iran,” said Art Hogan of B. Riley Wealth Management. Shares of Walmart veered in and out of positive territory after the retail giant reported solid earnings but offered profit forecasts below analyst expectations. Walmart, which topped $1 trillion in market valuation earlier in the month, finished slightly below that level after ending the day down 1.4 percent.
Major European indices finished the day lower, with shares in plane maker Airbus down 7.2 percent in Paris after its annual results fell short of analysts’ expectations. Shares in French carmaker Renault fell 3.1 percent in Paris after it posted higher 2025 sales but warned of slipping profit margins from increased sales of electric and hybrid vehicles. In London, disappointing earnings from mining giant Rio Tinto and energy group Centrica weighed on the blue-chip FTSE 100 index.
In Asia, Seoul’s Kospi led gains, jumping more than three percent to a record high as it reopened after the Lunar New Year break, with chip giants Samsung and SK hynix once again the standout performers. Tokyo also advanced while Hong Kong, Shanghai and Taipei remained closed for the Lunar New Year holiday. Asian stocks are enjoying a strong start to the year as investors turn to the region’s relatively cheaper tech plays after Wall Street’s AI-fueled surge over the past two years.
– Key figures at around 2115 GMT –
Brent North Sea Crude: UP 1.9 percent at $71.66 per barrel
West Texas Intermediate: UP 1.9 percent at $66.43 per barrel
New York – Dow: DOWN 0.5 percent at 49,395.16 (close)
New York – S&P 500: DOWN 0.3 percent at 6,861.89 (close)
New York – Nasdaq Composite: DOWN 0.3 percent at 22,682.73 (close)
London – FTSE 100: DOWN 0.6 percent at 10,627.04 (close)
Paris – CAC 40: DOWN 0.4 percent at 8,398.78 (close)
Frankfurt – DAX: DOWN 0.9 percent at 25,043.57 (close)
Tokyo – Nikkei 225: UP 0.6 percent at 57,598.83 (close)
Hong Kong – Hang Seng Index: Closed for holiday
Shanghai – Composite: Closed for holiday
Euro/dollar: DOWN at $1.1767 from $1.1783 on Wednesday
Pound/dollar: DOWN at $1.3458 from $1.3495
Euro/pound: UP at 87.43 pence from 87.31 pence
Dollar/yen: UP at 155.07 yen from 154.81 yen
burs-jmb/msp
© 2024 AFP
