Oil closes in on $100 as Mideast war flares
World oil prices rallied Tuesday, once more closing in on $100 a barrel, and stock markets mostly retreated owing to a flare-up in the Middle East war.
Oil prices surged past the $100 barrier on Tuesday, as the Middle East conflict escalated. Yemeni Houthi rebels, backed by Iran, carried out attacks on Saudi Arabia, prompting the suspension of operations at numerous energy facilities. Despite Tehran's claims of nearing an agreement with Oman regarding the Strait of Hormuz, market concerns remained high.
Analyst Stephen Innes at Quintex Intel noted that the market is now grappling with a potential Federal Reserve rate hike, inflation debates, oil nearing triple digits, and possible Japanese rate increases, along with renewed US threats of tariffs against Canada. The Japanese yen gained strength as investors anticipated a possible interest rate hike by the Bank of Japan, negatively impacting Tokyo's stock market.
European equities and US equity futures also declined, with Nikkei sinking to its worst performance among global indices. Rising oil costs are putting pressure on the Federal Reserve, with average diesel prices in the United States reaching a record high, according to AAA. Meanwhile, US President Donald Trump threatened to block Canadian plane manufacturer Bombardier from US sales, citing unfair trade terms, while Canada retaliated with tariffs on billions of dollars worth of US goods.
In other corporate news, Novartis' stock plummeted by over nine percent following disappointing trial results for a neurological disease treatment, while French AI firm Mistral saw its valuation surge to 21 billion euros after raising 3 billion euros in its largest European tech fundraising to date. Global AI development has driven demand for China's technology products, resulting in a surge in exports in August, according to official data.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
