Global oil prices climbed above $115 a barrel on Friday as renewed attacks in the Middle East raised concerns over energy supplies, while Wall Street opened lower and London’s FTSE 100 headed towards its first weekly decline in three weeks.
Brent crude rose 1.8% to $115.14 a barrel, having briefly reached $115.16, its highest level since 4 May 2026.
The latest increase followed reports of further Houthi attacks in Saudi Arabia, alongside an oil spill reported by authorities in the United Arab Emirates, adding to concerns over the security of regional energy infrastructure and shipping routes.
US West Texas Intermediate crude gained 1.8% to $101.27 a barrel, reflecting broader pressure on global energy markets as the Middle East conflict continues to threaten supply.
The sustained rise in oil prices is adding to concerns about inflation, potentially increasing transport, manufacturing and household energy costs while complicating central bank interest rate decisions.
Wall Street opened lower, with the Dow Jones Industrial Average falling 171 points, or 0.32%, to 52,696.70.
The S&P 500 declined 0.34% to 7,637.18, while the technology-heavy Nasdaq Composite dropped 0.44% to 25,893.95.
Semiconductor stocks remained under scrutiny following recent volatility linked to artificial intelligence investment and concerns over future profitability.
Nvidia initially fell 0.63% to $210.88 before recovering slightly to $212.40, while Intel traded broadly unchanged at $85.45.
Energy shares benefited from higher crude prices, with Exxon Mobil gaining 0.95% to $179.93 during early trading.
Elsewhere, American Express shares declined 2.54% to $316.90, despite the financial services group raising its full-year profit forecast following stronger-than-expected third-quarter results.
The company also announced plans to reduce its global workforce by approximately 5% as part of a restructuring programme.
In London, the FTSE 100 fell 0.59% to 10,662.02 by 2.47pm BST, extending the week’s losses and putting the index on course to end its two-week winning streak.
The FTSE 250 slipped 0.12% to 24,182.84, reversing earlier gains as investors remained cautious about global market conditions.
The weakness followed another volatile session for technology shares, with concerns surrounding AI infrastructure spending, high valuations and elevated borrowing costs continuing to influence sentiment.
Despite the recent sell-off, UBS maintained its positive outlook for global equities, citing resilient economic growth, corporate earnings and continued investment in artificial intelligence.
The bank forecasts the MSCI All Country World Index could reach 1,460 by December 2026 and 1,510 by June 2027, compared with 1,359 on 14 September.
However, those projections remain dependent on economic conditions, corporate profitability and investor sentiment, particularly as energy prices and geopolitical risks remain elevated.
For investors, Brent crude’s move above $115 represents another significant inflation risk, supporting oil producers while potentially placing additional pressure on businesses and consumers.
Attention will now turn to developments in the Middle East, upcoming US corporate earnings and whether the recent technology sell-off continues to weigh on global equity markets.
With Wall Street opening lower and the FTSE 100 extending its decline, markets remain sensitive to rising energy costs and uncertainty over the sustainability of artificial intelligence investment.
