Oil Spikes as Middle East Tensions Roil Global Markets

Global stock markets fell and oil prices surged above USD 100 per barrel as diplomatic efforts to de-escalate the Iran war showed no progress. The futures for major U.S. indices dropped as investors reacted to rising geopolitical tensions. Meanwhile, energy stocks experienced modest gains amid the uncertainty.

Wall Street and global markets were in retreat on Thursday, with oil prices climbing above USD 100 per barrel as attempts to ease tensions in the Iran conflict appeared unlikely to succeed.

U.S. stock futures for the S&P 500 and Dow Jones Industrial Average each fell 0.7 percent ahead of the opening bell. The Nasdaq futures were down 0.8 percent, reflecting investor trepidation amid heightened geopolitical risks.

The escalating crisis between Iran and the United States has caused oil prices to surge, with Brent crude, the international standard, increasing by 3.4 percent to USD 100.61 per barrel. Benchmark U.S. crude also rose by 3.2 percent. Despite powers maneuvering towards a resolution, diplomacy has faltered significantly. Oil market uncertainty buoyed energy stocks like ConocoPhillips and Valero Energy, although gains were limited to around 1 percent.

(With inputs from agencies.)