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 staged a rebound on Friday after opening 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 0.2% higher at 12:25 p.m. in London (8:25 ET), with major regional bourses and sectors painting a mixed picture during early afternoon dealmaking on Friday.
Oil and gas, insurance and utilities all led gains, while industrials and miners lagged the broader index.
Meanwhile, sterling fell against the euro and dollar on Friday, after preliminary data showed the UK economy stalled in January.
Sterling was last seen trading down 0.53% at $1.327, while the euro also weakened against the greenback by 0.33% to $1.147.
Deutsche Bank shares pared losses after the lender revealed a $30 billion exposure to the private credit market on Thursday. Deutsche shares largely mirrored the fortunes of the wider banking sector, which is seeking to quell the fallout of the Middle East conflict. The Stoxx 600 Banks index was last seen trading flat.
Meanwhile, BE Semiconductor shares rose 6% by early afternoon on rumors of takeover interest. BESI did not immediately respond to comment.
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 near 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 down 1.4% at $98.99.
West Texas Intermediate, the U.S. benchmark, was last seen down 2.4% at $93.40, 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.
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 ticked higher, with futures tied to the S&P 500 rising 0.34%, as the Nasdaq 100 rose 0.36% and Dow Jones Industrial Average futures rose 0.35%.
U.S. markets are lower week-to-date.