UK equities finished lower for a second consecutive session on Thursday as Iran escalated attacks on oil and transport infrastructure across the Middle East, pushing crude prices higher and heightening inflation concerns.
The FTSE 100 slipped 0.4%, while the FTSE 250 fell 0.9%. European markets also closed lower. The CAC 40 lost 0.71%, while Germany’s DAX slipped 0.21%.
Oil prices climbed back above $100 a barrel after Iranian vessels were reported to have attacked two fuel tankers in Iraqi waters. Iran’s supreme leader also signalled that the closure of the Strait of Hormuz should remain in place, adding to market anxiety.
Asian markets followed Wall Street lower as crude prices hovered near the $100 mark. Japan’s Nikkei 225 dropped 1.3% to 53,746.50, with technology stocks among the biggest losers. SoftBank Group fell 4.7%.
South Korea’s KOSPI declined 1.8% to 5,481.09. In Hong Kong, the Hang Seng Index lost 0.8% to 25,523.60, while China’s Shanghai Composite fell 0.6% to 4,105.40.
Australia’s S&P/ASX 200 edged down 0.1% to 8,617.10, while Taiwan’s TAIEX slipped 0.5%. India’s BSE Sensex also fell 0.9%.
Nearly $1 trillion was wiped off US equities during Thursday’s session as surging oil prices rattled markets. The S&P 500 dropped 1.52%, the Nasdaq Composite fell 1.78%, and the Dow Jones Industrial Average declined 1.56%.
