Oil prices have been pushed higher due to concerns that the conflict between Israel and Hamas might destabilize the Middle East.
The global benchmark, Brent crude, has increased by 2.3%, reaching nearly $88 per barrel. In the US, West Texas Intermediate has seen a 2.4% increase, approaching $85.
Over the week, Brent’s value has risen by over 4%, but the crude market has seen fluctuations as market participants assess the possibility of Iran, a backer of Hamas in terms of arms and funding, getting involved.
Charu Chanana, a market strategist at Saxo Capital, mentioned, “The main concern for oil arises if evidence of Iran’s involvement emerges. The future demand for oil is also uncertain.”
The FTSE 100 slightly rose due to the uptick in energy stocks linked to rising crude prices, offsetting concerns about ongoing US inflation and its implications for interest rates.
The UK’s leading stock index increased by a marginal 0.1%, while the mid-sized FTSE 250 decreased by 0.3%. Nonetheless, both indexes are on track for their largest weekly improvements in a month.
Worldwide, equity markets faced setbacks after the recent US inflation data, which was higher than anticipated, strengthened arguments for the Federal Reserve to further adjust its monetary policy.
Oil giants Shell and BP saw their shares go up by 0.9% and 1.4% respectively, mirroring the surge in crude prices.
Stocks in precious metal mining rose by 2.1%, and industrial metal mining stocks went up by 0.5%, influenced by the slight increase in gold and copper values.
Ashmore, the fund manager, witnessed a 1.9% decrease in its stocks as its managed assets fell in the September quarter, affected by a softer market environment due to less favourable Chinese economic data and elevated interest rates.
St James’s Place shares plummeted 10%, landing them at the FTSE 100’s lowest rank. This decline came as the company announced a reassessment of its fee structure, following the introduction of new regulatory guidelines during the summer. Consequently, the wider sector of investment banking and brokerage services saw a 1.4% loss.
