Crude Oil Prices Surge, Stocks Slide As War Fears Continue To Shake Global Markets

Oil prices stayed high as global tensions continued to impact supply. Brent crude traded around $109/barrel after rising sharply earlier in the week. Experts warn that high energy costs could increase inflation and slow economic growth.

Markets end a volatile week

Global markets ended the week on a shaky note as fears over rising energy prices continued to worry investors. Stocks slipped across Europe, Asia, and the United States, while oil prices stayed high after a week of tension in the Middle East.

The situation improved slightly on Friday, but uncertainty remains. Experts say markets are still nervous about how rising oil prices could affect inflation and economic growth.

Currency and global signals

The US dollar strengthened against other major currencies. This often happens when investors seek safer options during uncertain times.

Meanwhile, Russia cut its key interest rate slightly as its economy faces pressure from the ongoing war in Ukraine and Western sanctions. However, higher oil prices have helped support its economy.

Oil prices remain high

Oil prices stayed strong after a sharp rise earlier in the week. Brent crude was trading around $109 per barrel, while US West Texas Intermediate stood near $95.

Prices had earlier surged to about $119 per barrel after Iran targeted key energy sites in the Gulf region. The attacks came in response to earlier strikes on its own facilities.

The Strait of Hormuz, a key shipping route for oil and gas, remains under pressure. Around one-fifth of the world’s oil and gas passes through this route. Any disruption here quickly affects global prices.

Impact of energy disruptions

There were fresh concerns after Kuwait reported a fire at its Mina Al-Ahmadi refinery. This came a day after Qatar’s Ras Laffan facility was hit.

These incidents have raised fears of supply disruptions. Even though prices have eased slightly, they remain high enough to affect economies worldwide.

Experts warn that rising energy costs can lead to higher prices for goods and services. This could slow down economic growth.

Stock markets under pressure

European stock markets fell slightly on Friday after heavy losses a day earlier. London’s FTSE 100, Paris CAC 40, and Frankfurt DAX all dropped.

Asian markets also ended the week lower. Hong Kong and Shanghai recorded losses, while Tokyo was closed for a holiday.

In the US, Wall Street ended lower on Thursday despite a late recovery. Investors remain cautious as they track global events.

Central banks stay cautious

Major central banks, including the European Central Bank, Bank of England, and US Federal Reserve, decided to keep interest rates unchanged this week.

They are watching how the energy crisis may impact inflation. The European Central Bank warned that the current situation could push prices higher and slow growth in the eurozone.

In the UK, government bond yields rose sharply after warnings about inflation risks. This shows investors are worried about long-term economic stability.

Switzerland halts war material exports

Switzerland has announced that it will not allow the export of war materials to the United States during the ongoing Middle East conflict.

The Swiss government said this decision follows its long-standing policy of neutrality. It added that exports to countries involved in the conflict cannot be approved for now.

Officials also said that existing export licences to the US will be reviewed regularly. Switzerland has not issued such licences to Israel or Iran for several years.

Uncertainty continues

Even though there are signs that tensions may ease, markets remain sensitive to any new developments. Statements from global leaders have offered some hope, but risks are still high.

Investors are closely watching both political and economic signals. The coming days will be important in deciding whether markets stabilise or face more pressure.

(With AFP inputs)