Oil prices soared on Thursday after US president Donald Trump vowed in a televised speech to hit Iran “extremely hard” over the coming weeks, knocking hopes of a near-term end to the conflict in the Middle East.
Brent crude prices jumped to $106.40 (€92.15), up 5 per cent on the day, reversing Wednesday’s drop when hopes of a de-escalation in the Iran war pushed the international benchmark below the $100-a-barrel mark at one point.
Investors also assessed latest indications that energy shipping through the crucial Strait of Hormuz could be restored.
Iran was drafting a protocol with Oman for traffic through the strait, its foreign ministry said. Britain also said that about 40 countries were discussing joint action to reopen the strait to stop Iran from holding “the global economy hostage”.
READ MORE
Dublin
At home, Euronext Dublin fell 0.9 per cent, as it was dragged down by many of its bigger hitters, giving up much of the gain it made on Wednesday.
Bank of Ireland was one of the few names to finish in the green as it climbed 0.6 per cent, while AIB and PTSB fell 1.2 per cent and 1.35 per cent respectively.
Elsewhere, budget airline Ryanair gave up much of the ground it made on Wednesday as it shed more than 2 per cent to fall to €24.44.
The food names also finished in the red, with food ingredients giant Kerry Group down 0.22 per cent at close of business, while Glanbia finished down 1.2 per cent.
Meanwhile, Cavan-based insulation specialist Kingspan, which is the biggest company left on the index by market capitalisation, was down 1.5 per cent at the close.
London
The FTSE 100 rose 0.7 per cent into the close in volatile trading, as rumours and uncertainty surrounding the Middle East sparked sharp market moves. The FTSE 250 ended down 0.2 per cent, and the Aim All-Share fell 0.6 per cent.
On the FTSE 100, the weak gold price weighed on Fresnillo and Endeavour Mining, down 1.7 per cent and 2.4 per cent respectively. While, on the FTSE 250, Hochschild Mining fell 3.4 per cent.
SSE rose 1.9 per cent after raising the bottom end of annual earnings guidance to reflect continued strong operational performance.
The energy index rose 2.7 per cent, leading gains as oil hit around $110 a barrel after Trump vowed continued attacks on Iran.
Oil majors BP and Shell rose 2.6 per cent and 2.9 per cent respectively, ranking among the top gainers on the benchmark index.
The pharma index climbed 1.7 per cent as AstraZeneca rose 1.9 per cent after it said a late-stage trial showed its Imfinzi combination improved progression-free survival in a common liver cancer.
Europe
The pan-European Stoxx 600 index fell 0.2 per cent, while Europe’s broad FTSEurofirst 300 index fell 0.22 per cent.
Elsewhere, the Cac 40 in Paris closed down 0.2 per cent, while the Dax 40 in Frankfurt fell 0.6 per cent, both well above early lows.
Euro-zone benchmark bund yields snapped a three-day decline and traders raised bets for interest-rate hikes.
German borrowing costs were still on track for their first weekly decline since the start of the war. The 10-year government bond yield fell 0.7 basis points to 2.989 per cent.
New York
Wall Street’s main indexes pared declines and were muted on Thursday, in the last session of a holiday-truncated week.
The Dow Jones Industrial Average was down 0.2 per cent, but jumped 600 points on the Iran/Oman reports. The S&P 500 index was down 0.1 per cent, as was the Nasdaq Composite.
Separately, private credit jitters resurfaced after Blue Owl capped the amount investors can withdraw from two of its retail-focused funds, sending its shares down marginally.
Other asset managers, including Apollo Global, Blackstone and Ares Management, also inched lower. – Additional reporting: agencies
