Oil prices climbed on Friday while global stock markets mostly declined, as stalled peace talks between the United States and Iran and continued tensions around the Strait of Hormuz unsettled investors. Benchmark crude prices moved higher in early trading, with US West Texas Intermediate (WTI) rising 1.23 percent to $97.03 per barrel. Brent crude, the international benchmark, gained 1.26 percent to reach $106.40 per barrel, reflecting growing concerns over supply disruptions.
The gains followed renewed uncertainty over the Strait of Hormuz, a critical global shipping route through which roughly one-fifth of the world’s oil supply passes. Iran signaled it would not fully reopen the passage to commercial traffic as long as US restrictions on its ports remain in place, reversing earlier indications of easing tensions.
The fluctuating stance has triggered sharp movements in oil markets over recent days, highlighting the fragility of the geopolitical situation. Analysts say the ongoing uncertainty is keeping energy markets on edge, with supply risks pushing prices higher.
Global equity markets reacted negatively to the developments. Major US indexes closed lower after a volatile trading session, while European and Asian markets also mostly declined. Investors have become increasingly cautious as hopes for a swift resolution to Middle East tensions fade.
Market sentiment has been influenced by a combination of rising oil prices and geopolitical risks. Analysts note that crude prices moving above the $105 per barrel level for Brent have reignited concerns about inflation, which could weigh on global economic growth.
“There remains a tug of war between strong corporate earnings and geopolitical uncertainty,” market analysts said, pointing to mixed investor confidence. While recent earnings reports and continued enthusiasm around artificial intelligence have supported equities, prolonged conflict in the Middle East is seen as a key downside risk.
Economic data from Europe added to concerns, with business activity in the eurozone contracting for the first time in over a year. Rising energy costs and supply chain disruptions linked to the conflict have put additional pressure on the region’s economy.
Corporate developments also influenced trading. Some companies reported strong results, while others faced declines in share prices, contributing to the uneven performance across markets. Meanwhile, select Asian markets showed resilience, supported by gains in the technology sector.
Currency markets reflected cautious sentiment, with the dollar strengthening slightly against major currencies, while the euro and pound weakened.
Analysts warn that continued tensions around key energy routes and the absence of progress in diplomatic talks could sustain volatility in both energy and financial markets in the near term.
