Oil Extends Gains as Wall Street Returns to the Red
In Asia, major indexes rebounded after a sharp sell-off on Wednesday. South Korea’s Kospi index jumped 9.6%, partially recovering.
Quick overview
- Oil prices are rising due to fears of escalating conflict in the Middle East disrupting global energy supplies.
- U.S. and European stock markets experienced declines as investors assessed the economic impacts of the ongoing war.
- Asian markets rebounded after a significant sell-off, with South Korea's Kospi index recovering sharply.
- Brent crude reached $84.27 per barrel, with analysts cautioning that prolonged conflict could push prices above $100.
Oil prices continued to climb amid persistent market fears that the conflict in the Middle East could escalate and disrupt global energy supplies. Meanwhile, U.S. and European stock markets moved lower.
Major Wall Street indexes traded in negative territory on Thursday as investors continued to digest the potential economic impacts of the war in the Middle East. The brief respite seen earlier in the week has yet to materialize in oil prices, which remain the market’s main focus. Although crude slowed its early-week surge, prices moved higher again on Thursday, with Brent crude rising above $83 per barrel.
In Asia, major indexes rebounded after a sharp sell-off on Wednesday. South Korea’s Kospi index jumped 9.6%, partially recovering from the previous day’s 12.06% plunge—the largest daily drop in its history. Japan’s Nikkei gained 1.9%, while markets in Shanghai and Hong Kong closed up 0.6% and 0.3%, respectively.
In Europe, the Euro Stoxx index slipped 0.58%. Among major markets, France’s CAC 40 fell 0.85%, the U.K.’s FTSE 100 declined 0.62%, while Germany’s DAX edged up 0.85%.
Against this backdrop, the S&P 500—tracking the largest companies listed in New York—fell 0.88%, while the tech-heavy Nasdaq Composite dropped 0.54%. The Dow Jones Industrial Average declined 1.84%.
The day’s biggest gainers included Expedia (+11.09%), Booking (+8.26%), and LyondellBasell Industries (+8.33%). On the other hand, the steepest declines were seen in United Airlines Holdings (-7.6%), Delta Air Lines (-7.1%), and Corning (-7.44%).
Oil continues to rise
Meanwhile, oil prices remained on an upward trend as markets continued to worry about a potential escalation of the conflict and its impact on global energy supplies.
European benchmark Brent crude rose another 3.46% to $84.27 per barrel on Thursday. U.S. benchmark West Texas Intermediate (WTI) climbed 6.28% to $79.32.
Although the pace of gains has slowed, some analysts warn that a prolonged conflict disrupting supply could push prices above $100 per barrel.
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