Global shares fell on Thursday as attacks on oil tankers in the Gulf and warnings from Iran shattered prospects of an imminent de-escalation in the Middle East conflict, pushing oil prices to about $100 (€86.77) a barrel and stoking fresh inflation concerns.
Wall Street’s stock indexes slumped, dragged down by rising oil prices and concerns about the private credit market. The Dow Jones Industrial Average and the S&P 500 dropped about 1.2 per cent, and the Nasdaq Composite lost 1.4 per cent.
Brent crude futures jumped as much as 10.4 per cent to $101.59 a barrel, before trimming gains, as doubts persisted over whether reserve releases would be enough to cushion the hit from the Middle East supply shock.
US crude futures were last trading 8.7 per cent higher at $94.85 a barrel, and Brent last stood just under $100 a barrel.
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Iran will avenge the blood of its martyrs, keep the Strait of Hormuz closed and attack US bases, new supreme leader Mojtaba Khamenei said on Thursday in a statement read out on state television, his first remarks since succeeding his slain father.
Dublin
Like its peers in Europe, the Dublin bourse dropped in tandem with the worsening geopolitical outlook. AIB and Bank of Ireland shouldered the worst of Thursday’s slide, dropping 5.6 and 3 per cent respectively. Iseq heavyweight Ryanair, a stock that is extremely sensitive to rising fuel prices, was down 2.9 per cent. Glanbia was one of only a few stocks to trade positively, rising 1.9 per cent to €17.52.
Home builder Glenveagh fell 1.4 per cent ahead of results on Friday and as Irish property executives and economists reported an uptick in interest in the Irish market at the Marché International des Professionnels de l’Immobilier (MIPIM) conference taking this week in Cannas.
London
UK stocks closed lower for a second straight day on Thursday after Iran stepped up attacks on oil and transport facilities across the Middle East, driving a surge in crude prices that stoked concerns about rising inflationary pressures.
The blue-chip FTSE 100 closed down 0.4 per cent, while the mid-cap FTSE 250 fell 0.9 per cent.
Britain is seen as more exposed than many other western countries to an energy price shock due to its stretched public finances and its heavy reliance on imported gas.
“The longer the disruption goes on, the greater the impact on energy prices and in turn global inflation. This then has implications for interest rates too,” said Danni Hewson, head of financial analysis at AJ Bell.
A survey from RICS showed Britain’s housing market has lost steam as demand faded from buyers concerned about the implications of the Middle East conflict and possible increases in mortgage rates on the back of energy price rises.
Several of the largest moves in the FTSE 100 were driven by stocks trading ex-dividend, meaning new buyers are no longer entitled to the next dividend payment.
Among those were HSBC, which closed down 6.1 per cent; Entain, which fell 2.6 per cent; and Schroders, which finished 2.7 per cent lower.
M&G closed down 3.6 per cent despite better-than-expected results, reflecting profit taking after a strong run and some disappointment at the lack of a share buyback.
Europe
European stocks finished lower on Thursday as investors monitored the Iran war and volatile global oil prices. The pan-European Stoxx 600 was about 0.7 per cent lower.
BMW shares initially declined after the carmaker forecast group pretax earnings to decline moderately this year and deliveries to stagnate but closed the session up.
Daimler Truck also closed up after guiding for a broadly stable 2026 profit margin in its industrial business.
Shares of Leonardo closed 5.7 per cent higher after the Italian defence giant reported stronger-than-expected revenue of €19.5 billion.
Abivax shares were 6.8 per cent higher amid speculation the biotech group is the target of a takeover bid, which the company denied.
New York
Wall Street’s major indexes fell more than 1 per cent on Thursday, with financial stocks taking a blow, as a surge in oil prices towards $100 a barrel rekindled inflation fears and investors kept a close watch on mounting jitters in the private credit sector.
Crude prices jumped after two tankers were set ablaze in Iraqi waters in apparent Iranian strikes, as part of wider attacks on oil and transport facilities across the Middle East. Mojtaba Khamenei said the Strait of Hormuz should remain closed as a tool of pressure.
S&P 500 airline stocks, highly sensitive to fuel costs, fell 3.7 per cent and are on track for their biggest monthly losses in a year. Cruise operators Norwegian and Royal Caribbean fell 2.8 per cent and 7 per cent respectively.
Energy stocks rose, with Occidental gaining 5.9 per cent and ConocoPhillips rising 3 per cent, while the S&P 500 fertilisers and agricultural chemicals sector climbed more than 5 per cent.
Also underwhelming markets were concerns over the $2 trillion private credit market after Swiss private equity firm Partners Group warned default rates could double in the next few years.
Morgan Stanley fell 4 per cent after limiting redemptions at one of its private credit funds following similar actions by Blackstone and BlackRock earlier this month. – Additional reporting: Reuters
