Stock markets fall and oil exceeds $100 with renewed tensions in the Middle East
The United States and Iran have once again raised tensions in the Middle East with an exchange of attacks in the Strait of Hormuz just hours before a month has passed since the start of the ceasefire between the parties, reviving concerns about energy supplies. US President Donald Trump assures that his country’s forces were unharmed, while Tehran denounces a violation of the truce declared 29 days ago by the Republican president himself. After the exchange of shots, Trump defended before the ABC network that the ceasefire “is still in force” and that it had only been a “love blow.” However, the president, in his Truth Social account, threatened to attack Tehran with greater military force and violence if Iran does not sign an agreement soon.
In this unstable context, after hopes of a peace agreement in recent days, the MSCI All Country World index, the broadest indicator of global equities, fell 0.3%. The Asian stock markets recorded falls, of more than 1% in the case of the Hang Seng in Hong Kong. The Shanghai index lost 0.4%, while Japan’s Nikkei lost 0.6%. Still, Taiwan, Japan and South Korea are poised for strong weekly gains as demand for AI has boosted chipmakers. For their part, American futures resist and mark slight gains, while the EuroStoxx 50 anticipates declines of more than 0.5% at the opening of the session in Europe.
Renewed hostilities in the Middle East lead oil to rise more than 1% to $101 a barrel, fueling speculation that rising energy costs would hamper economic growth. Despite the rise, oil has fallen more than 6% this week.
