Iran is making efforts to disrupt supplies in the Middle East.
Oil prices rose above $100 on Thursday and stocks sank as Iran’s efforts to disrupt supplies in the Middle East and bring down the global economy prompted a record release of strategic crude stockpiles by the International Energy Agency.
Stock markets in Asia closed lower on Thursday and European markets opened lower as investors saw few signs that the US-Israel war with Iran would soon end, despite repeated assurances from President Trump.
US Energy Secretary Christopher Wright announced on Wednesday the US would release 172 million barrels of oil from its Strategic Petroleum Reserve, while the International Energy Agency – which has 32 member states, including the US – announced it will release 400 million barrels from its reserves.
U.S. benchmark Brent crude, the international standard, was trading 5.3% higher at around $97 a barrel on Thursday after hitting $100.50 on Wednesday.
In stocks, futures for the S&P 500 fell 0.4%, while the Dow Jones Industrial Average was down 0.5%. Germany’s DAX fell 0.4% to 23,533.60 on Thursday, while the CAC 40 in Paris fell 0.7% to 7,982.64. Britain’s FTSE 100 fell 0.7% to 10,285.91.
In Asia, Tokyo’s Nikkei 225 fell 1% to 54,452.96, South Korea’s Kospi fell 0.5% to 5,583.25, and Hong Kong’s Hang Seng fell 0.7% to 25,716.76. The Shanghai Composite Index fell 0.1% to 4,129.10, while the S&P/ASX 200 in Australia fell 1.3% to 8,629.00.
CBS/AFP
