Oil prices surged about 20% on Monday as the U.S.-Israeli war with Iran continued, raising fears of prolonged disruptions to energy supplies.
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LONDON — European stocks opened the week’s final trading session in negative territory, as investors continued to weigh the ongoing conflict in the Middle East and its lasting impact on growth.
The pan-European Stoxx 600 was 0.5% lower at 9:00 a.m. in London (5:00 ET), with all major regional bourses and most sectors trading in negative territory during early dealmaking on Friday.
European equities ended the previous session in negative territory, with the pan-European Stoxx 600 closing Thursday’s trade about 0.7% lower.
Energy prices remain in sharp focus following a choppy week for global markets. The U.S. on Friday issued a temporary 30-day waiver on sanctioned Russian oil in transit at sea, in a bid to ease concerns over a growing supply squeeze and surging prices.
Brent crude prices remain above the $100 level, despite the International Energy Agency announcing on Wednesday a record 400 million barrel release from its emergency reserves. The international benchmark was last seen up 0.5% at $100.96.
West Texas Intermediate, the U.S. benchmark, was last seen at $95.96, down less than 0.3%, as the U.S. Energy Department said it would release 172 million barrels of oil from its Strategic Petroleum Reserve.
Following a spate of attacks on vessels in the area this week, U.S. Treasury Secretary Scott Bessent said escorts for vessels through the vital Strait of Hormuz chokepoint would begin “as soon as militarily possible.” Chris Wright, U.S. energy secretary, said escorts would happen “relatively soon” but it “can’t happen now.”
Iran’s new Supreme Leader Mojtaba Khamenei said late Thursday that the country would continue to block the shipping channel, which has been effectively shut off since the outbreak of hostilities, causing the rapid spike in oil prices.
Elsewhere, U.K. GDP data showed Britain’s economy flatlined in January.
Rising costs continue to weigh on markets, with Asian stocks under pressure during Friday’s session, with Japan’s Nikkei 225 and South Korea’s Kospi both down.
On Wall Street, U.S. futures moved to the upside, with futures tied to the S&P 500 rising 0.25%, as Dow Jones Industrial Average futures added 0.32% and the Nasdaq 100 rose 0.12%.
U.S. markets are lower week-to-date, however.