Markets climb across Asia and Europe after crude retreats from near-$120 spike
Global equities advanced Tuesday as a sharp retreat in oil prices helped stabilize investor sentiment after a turbulent start to the week, with markets taking cues from a rebound on Wall Street.
Shares across Asia and Europe rose after crude prices, which had surged close to $120 per barrel during escalating tensions linked to the Iran conflict, fell back toward roughly $90, easing some of the pressure on financial markets.
The pullback in oil helped lift risk appetite globally, with investors betting the conflict may not drag on as long as feared. Markets had been rattled earlier by fears that disruptions to energy supplies in the Middle East could send fuel prices sharply higher and weigh on global growth.
Stocks in several major Asian markets posted strong gains. Japan’s Nikkei 225 rose 2.9%, while South Korea’s Kospi jumped 5.4%. European markets also moved higher, with Germany’s DAX climbing 2.4%, France’s CAC 40 advancing 1.9%, and the U.K.’s FTSE 100 gaining 1.6%, BNN Bloomberg reported.
Futures trading pointed to a similar recovery in the United States. Dow Jones Industrial Average futures and S&P 500 futures both rose about 0.4%, signaling a positive start for Wall Street after the previous day’s sharp sell-off.
The swings in equities closely tracked dramatic moves in energy markets. Oil prices had surged amid fears that the war involving Iran could disrupt shipments through the Strait of Hormuz, a key artery for global oil transport. But prices later retreated sharply, helping calm markets.
CNBC reported that crude prices dropped significantly after earlier spikes tied to concerns that escalating hostilities could threaten supply routes and energy infrastructure. The reversal in oil prices helped lift stocks globally as investors recalibrated expectations about the conflict’s economic impact.
Despite the market rebound, the energy situation remains volatile. According to CNBC, traders are still closely watching developments in the Middle East as any disruption to oil shipments could quickly push prices higher again.
Meanwhile, the conflict has already caused major strain on global energy flows. Dan Yergin, vice chairman of S&P Global, said the crisis has triggered a historically large disruption in oil markets, with around 20% of global daily oil and liquefied natural gas supply affected, according to The Wall Street Journal’s live market coverage.
The disruption is particularly significant for Asian economies, which rely heavily on energy shipments that pass through the Strait of Hormuz.
For now, falling oil prices have provided markets with a measure of relief after days of volatility. But analysts caution that investor sentiment could shift quickly if tensions in the region escalate again or if energy supplies face renewed threats.
