Oil Prices Surge, Stocks Drop Amid Middle East Tensions

Global oil prices spiked and major stock markets mostly declined on Thursday as rising tensions in the Middle East fueled investor concerns.

The surge in oil prices followed comments by U.S. President Joe Biden, who said he was discussing potential Israeli strikes on Iranian oil sites in response to Tehran’s missile attacks on Israel. This sent Brent crude up more than 5% to $77.62 per barrel, while West Texas Intermediate saw a similar rise.

Major U.S. stock indices, including the S&P 500, ended the day down, along with London, Paris, and Frankfurt markets, as fears of a broader regional conflict gripped investors. Oil price gains were somewhat tempered by higher-than-expected U.S. stockpiles and Libya’s decision to lift a production blockade.

The geopolitical crisis in the Middle East has raised concerns that Israel’s conflict with Iranian-backed groups in Gaza and Lebanon could expand into a full-scale regional war. The situation intensified after Iran’s missile barrage and warnings of a stepped-up response if Israel counterattacks.

While oil prices soared, stock markets dipped as investors weighed the potential impact of the conflict alongside upcoming U.S. economic data, including a key jobs report due on Friday. This report is expected to provide further insight into the Federal Reserve’s plans regarding interest rates.

Key Market Figures (as of 2030 GMT):

• Brent Crude: UP 5.0% at $77.62 per barrel
• West Texas Intermediate: UP 5.2% at $73.71 per barrel
• Dow Jones: DOWN 0.4%
• S&P 500: DOWN 0.2%
• Nasdaq: DOWN less than 0.1%
• FTSE 100: DOWN 0.1%
• CAC 40: DOWN 1.3%
• DAX: DOWN 0.8%
• Nikkei 225: UP 2.0%