London (AFP) – World oil prices soared Wednesday, with the benchmark international contract Brent North Sea crude surpassing $95 for the first time in nearly six weeks as the United States and Iran carried out more strikes. Crude futures went on to give up some of the gains but still banked gains of about 3.5 percent. Fresh US strikes triggered air defences in Tehran after President Donald Trump warned he was “not finished” with a war with Iran that has already cost his nation $37.5 billion.
After the foes’ fighting over the strategic Strait of Hormuz led to the collapse of a preliminary deal, the Middle East war has expanded to include the region’s other key chokepoint for global oil supplies. Still, top US diplomat Marco Rubio reiterated Washington’s statement that it is willing to use diplomacy to find an agreement with Tehran. Oil futures have risen strongly in recent weeks, after having fallen back to pre-war levels on hopes that a deal to end the conflict would hold. The escalation in violence has made a return to $100 crude a realistic prospect should tensions not ease.
While stock market traders kept a close watch on Mideast war developments, focus was also firmly on the technology sector, as has been the case for several weeks. “European stock indices are brushing off the rise (in oil prices)…after a stunning rally for US chip stocks on Tuesday,” noted Kathleen Brooks, research director at traders XTB. Asia’s main stock markets closed mixed on Wednesday, as investors eagerly awaited earnings updates from technology giants.
The recent “pullback in chip stocks following a storming run earlier this year has left investors hungry for an update on AI-related demand and to see if all the big investments into tech infrastructure are paying off,” said Russ Mould, investment director at AJ Bell. Google parent “Alphabet reports tonight, with Intel following tomorrow and Microsoft, Meta…and others next week,” he added.
**Key figures around 1045 GMT:**
– Brent North Sea Crude: UP 3.6 percent at $94.32 per barrel
– West Texas Intermediate: UP 3.5 percent at $87.30
– London – FTSE 100: UP 1.1 percent at 10,704.37 points
– Paris – CAC 40: UP 0.9 percent at 8,440.97
– Frankfurt – DAX: UP 0.5 percent at 25,139.42
– Tokyo – Nikkei 225: DOWN 0.2 percent at 66,115.60 (close)
– Hong Kong – Hang Seng Index: DOWN 0.95 percent at 24,892.66 (close)
– Shanghai – Composite: UP 0.1 percent at 3,867.03 (close)
– New York – Dow: UP 0.7 percent at 52,224.64 (close)
– Euro/dollar: UP at $1.1408 from $1.1406 on Tuesday
– Pound/dollar: DOWN at $1.3367 from $1.3383
– Euro/pound: UP at 85.34 pence from 85.20 pence
– Dollar/yen: DOWN at 163.03 yen from 163.17
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© 2024 AFP
