Global Markets Unsettled by Middle East Conflict and Oil Surge

European stocks and U.S. futures fell amid escalating concerns over oil supplies due to the U.S.-Iran war. Benchmark oil prices soared, causing financial markets to readjust expectations about central bank rate cuts. Qatar warned of severe economic impacts if Gulf energy exports halt, unsettling global markets further.

European stocks and U.S. futures saw declines on Friday as the ongoing U.S.-Iran conflict intensified worries about oil supply disruptions. This development is prompting a reassessment of potential central bank rate cuts amidst an already volatile financial atmosphere.

Oil prices reached their highest point since mid-2024, instigating significant movements in financial markets. U.S. Treasuries decreased for a fifth consecutive day while the dollar showed strength. Notably, the futures for the U.S. S&P 500 and Nasdaq indexes fell by notable margins.

Qatar issued a warning about drastic consequences on energy markets, predicting Gulf producers might halt exports, potentially pushing oil prices to $150 a barrel, thus amplifying the economic ramifications worldwide. This alert contributed to the fluctuating conditions across global financial landscapes.

(With inputs from agencies.)