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Oil rises as Middle East tensions hit stocks

Oil prices extended gains on Thursday after fresh US military action against Iran heightened concerns about energy shipments through the Middle East, weighing on risk appetite across major equity markets. US stocks were mixed on Wednesday, European stocks fell sharply, and Asian markets mostly declined on Thursday, although Japan and mainland China outperformed.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

Oil prices extended gains after fresh US military action against Iran on Thursday heightened concerns about energy shipments through the Middle East, with Brent crude oil futures rising 0.5% to USD 78.37 per barrel and West Texas Intermediate (WTI) futures gaining 0.4% to USD 73.81 per barrel. Both benchmarks had already climbed on Wednesday after US Central Command said new strikes were carried out in response to Iranian attacks on commercial vessels near the Strait of Hormuz. US President Donald Trump also said negotiations with Iran were no longer his priority and declared the ceasefire over, adding to fears that disruption around one of the world’s most important energy transit routes could push up near-term prices and freight costs. Gold eased 0.1% to around USD 4070 per ounce midweek, while the US Dollar Index slipped 0.1% to 100.93. US Treasury yields moved higher, with the 2-year yield at 4.2% and the 10-year yield at 4.6%.

US stocks mixed on Middle East tensions

US equity markets ended mixed on Wednesday as renewed Middle East uncertainty weighed on sentiment, with the Dow Jones Industrial Average falling 1.1% to 52,348.39 points and the S&P 500 slipping 0.3% to 7482.71 points. The technology-heavy Nasdaq 100 rose 0.3% to 29,252.56 points. Chipmaker Broadcom gained nearly 5% after agreeing a deal worth more than USD 30 billion with Apple.

Asian stocks fall as oil rises

Most Asian equity markets declined on Thursday as renewed US strikes on Iran and higher oil prices reduced risk appetite, while disappointment over Samsung Electronics’ earnings continued to weigh on South Korean shares. Korea’s Kospi fell 0.7%, extending losses after entering bear-market territory this week, with Samsung down 2.5% after a drop of almost 7% in the previous session, while SK Hynix rebounded 3.5% on strong demand for its planned USD 28 billion US listing. Japan outperformed as Japan’s Nikkei 225 rose about 1.4%, supported by renewed buying in chip suppliers such as Murata and TDK.

China inflation picture diverges

China’s consumer price inflation slowed to 1% year-on-year in June from 1.2% in May, according to data released on Thursday, slightly undershooting market expectations as elevated energy costs weighed on domestic demand. Core inflation, which excludes food and energy, also eased to 1% from 1.1%, while food prices fell 1.6% after a 1.7% decline in May. Producer prices rose 4.1% year-on-year, the strongest increase since July 2022 and up from 3.9% in May, although they declined 0.3% from the previous month. The rebound in factory-gate prices, which had fallen 3.6% in June 2025, was driven by higher commodity costs linked to Middle East supply risks and stronger demand for AI-related technology, but weak consumption has limited companies’ ability to pass on cost increases. Hong Kong’s Hang Seng Index fell 1% to 23,950.00 points on Thursday, while mainland China’s CSI 300 rose 0.8% to 4791.58 points.

European stocks slide on Middle East tensions

European equities fell sharply on Wednesday as the escalating Middle East conflict ended the recent rally, with the Euro Stoxx 50 down 1.8% at 6206.86 points, its lowest level since mid-June and almost 4% below Monday’s record. Switzerland’s SMI lost 1.3% to 14,174.35 points.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from PepsiCo and Progressive.

Economic data in focus: German trade balance (08:00), European Central Bank monetary policy meeting minutes (13:30), US weekly initial jobless claims (14:30), US existing home sales (16:00).

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Editor: Alessandro Fezzi
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