Oil company share prices soared on Wednesday as oil prices rose further in response to escalating conflict in the Middle East. European traders saw Brent and West Texas Intermediate prices soar by more than 2%, leading to gains for companies like BP, Shell, TotalEnergies, and Eni. The FTSE 100 index also saw gains, with European stock markets showing positive movement, despite the ongoing conflicts.
Investors are closely watching the situation as Iran launched a missile attack on Israel in response to the killing of Hezbollah leader Sayyed Hassan Nasrallah. Brent crude oil futures rose by 1.6% to $74.75, while West Texas Intermediate futures rose by 1.7% to $70.98. Analysts suggest that escalation risks in the region may be higher this time, with concerns about potential direct responses from Israel.
As Asian markets outside of China slumped, Hong Kong’s stock market soared by 6% due to Beijing’s stimulus efforts. Investors are now waiting to see how Israel will respond to Iran’s attack, as Israeli forces continue to strike Beirut and fight in Gaza. Despite initial market volatility, investors are now waiting for further developments in the conflict.
The day’s agenda includes key economic data releases such as the Eurozone unemployment rate and US ADP employment change figures. Analysts remain wary of the geopolitical risks posed by the Middle East conflict and its potential impact on global markets.
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