Global stock markets continued to take a hammering on Friday as oil prices rocketed in their biggest weekly gain for six years, with no sign of a swift resolution to the conflict in the Middle East.
London’s FTSE 100 Index slumped 1.6 per cent lower at one stage before settling around 1 per cent lower, having started the day in positive territory, with declines compounded by heavy falls on Wall Street.
The Dow Jones Industrial Average tumbled 1.5 per cent lower in early evening, with gloomy jobs data in the US adding to market woes, and there were similar declines across Europe as the Dax in Germany and France’s Cac 40 were both 1.5 per cent down.
Benchmark Brent crude prices shot up by as much as another 7 per cent to $91 a barrel, reaching levels not seen for nearly two years, after Kuwait reportedly joined Qatar and said it was beginning to halt energy production.
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The sharp gains since the US-Israel war with Iran began on Saturday mean oil prices have risen by around 25 per cent so far this week – the biggest weekly gains since early 2020 at the height of the Covid-19 pandemic.
Dublin
Homegrown insurer FBD finished up 0.3 per cent despite reporting a near 30 per cent fall in its pretax profit for last year as it absorbed €30.8 million of net costs from Storm Éowyn .
The profit drop to €54.2 million came as the Dublin-listed group’s result from insurance underwriting declined by 33 per cent to €44.9 million, the company said on Friday.
AIB and Bank of Ireland had contrasting fortunes. AIB was up 1.6 per cent while its rival fell by 1 per cent. PTSB was down nearly 5 per cent at €3.07 despite proposing to pay its first dividend since 2008 after growing loans and deposits last year. After announcing strong results earlier in the week, home builder Cairn traded flat.
Europe
European shares posted their steepest weekly decline since April as the war in Iran showed no sign of nearing a resolution.
The Stoxx Europe 600 Index was down 1 per cent by the close, extending its weekly drop to 5.6 per cent. Energy stocks outperformed as Brent crude topped $90 a barrel after a report that Kuwait had started cutting output and as the maritime traffic through the Strait of Hormuz effectively ground to a halt. All other sectors were in the red.
London
The blue-chip FTSE 100 dipped 1.2 per cent, while the FTSE 250 was down 0.8 per cent on the day. Both indexes recorded their worst weekly showing since the April 2025 rout triggered by US President Donald Trump’s “Liberation Day” tariffs.
Shares of oil majors Shell and BP rose nearly 1.2 per cent and 0.6 per cent respectively, as Brent crude topped $90 a barrel for the first time in two years as the conflict kept shipping and energy exports through the vital Strait of Hormuz blocked.
Engineering group IMI was also among the top gainers in the index, up as much as 4 per cent as it announced a share buyback. Mining stocks pulled the index lower.
New York
US stocks slumped to end a volatile week, with soaring oil prices and the specter of energy supply shocks from the war in the Middle East fanning inflation fears, and a surprise decline in US jobs stoking concerns about growth.
The VIX, known as the fear gauge, reached 28 after US President Donald Trump ruled out a deal to end the war, saying he wants Iran’s “unconditional surrender.”
The S&P 500 Index fell 1.1 per cent in early trading in New York, testing a resistance level on the way down, as every sector except energy fell and nearly four stocks in the benchmark dropped for every one that gained. The tech-heavy Nasdaq 100 Index fell 0.9 per cent, while the Dow Jones Industrial Average tumbled 1.2 per cent.
Western Alliance shares fell 12.9 per cent after the bank said it had sued Jefferies Financial for not making a payment of $126.4 million due to the regional lender for loans tied to bankrupt auto parts supplier First Brands Group. Jefferies shares dropped 9.6 per cent.
AI-chip stocks Nvidia and Advanced Micro Devices were down about 0.8 per cent and 1.4 per cent, respectively. US officials are debating a new regulatory framework for exporting artificial intelligence chips, although the rules were not final.
Marvell Technology jumped 16.2 per cent after the chip company forecast fiscal 2028 revenue above estimates.
Additional reporting by Reuters/Bloomberg
