Oil prices hit four-year high amid fears of renewed Middle East hostilities

Tankers at the Khor Fakkan Container Terminal, UAE, amid growing concerns of an escalation of the conflict in the Middle East. Photo / AFP

Oil prices reached their highest levels since 2022 on Thursday amid concerns of a resumption of hostilities in the Middle East.

Meanwhile, US and European stock markets mostly rose on positive earnings reports from some tech firms.

International benchmark Brent crude soared more than 7% to US$126 a barrel but then eased and turned lower to trade around US$110. That’s still almost double its price before the United States and Israel attacked Iran.

Markets were jolted after President Donald Trump warned the US blockade of Iranian ports could last months, and by a report that he would be briefed on potential fresh military strikes.

Kathleen Brooks, research director at XTB, said: “Fears about escalation in the conflict between the US and Iran fuelled the initial move higher before the market calmed down.”

The expiry of monthly contracts also added to the volatile moves.

All the main European stock markets closed higher, taking their cue from largely positive earnings reports from US tech companies.

Shares in Google parent company Alphabet rose more than 5% as investors lauded the company’s success in making the pivot to artificial intelligence and solid revenue across its major divisions.

But shares in Meta slumped more than 9% amid concerns about its huge AI spending. Apple reports later today, and its shares were up almost 1%.

Briefing.com analyst Patrick O’Hare said that, Overall, “the earnings results have been supportive, and understandably so given that there has been a large number of very large beats” of earnings forecasts.

In New York, the Dow and the S&P were higher in midday trading while the Nasdaq was little changed.

Meanwhile, the Bank of England cut its forecast for UK growth.

Data released on Thursday showed that growth in the Eurozone economy slid to 0.1% in the first quarter, whereas in the United States, it rebounded by a less-than-expected annual rate of 2% as consumer spending cooled and the effects of the Middle East war began to ripple through the global economy.

The yen shot more than 2% higher against the dollar after Japan’s finance minister hinted strongly that Tokyo was close to intervening in the market to support the currency, after it slipped to its lowest level against the dollar since mid-2024.

- AFP