Oil hits highest level since 2023

Both US and European stock markets ended the week with significant losses as the escalation of the war between the United States, Israel and Iran rattled investors and sent oil prices soaring. Major stock indices fell by more than one per cent.

Tensions in the Middle East pushed oil futures to their highest levels since 2023. The price of US crude rose 12.21 per cent to $90.90 a barrel, the largest one-day increase since 2020 during the pandemic. The international benchmark Brent rose 8.52 per cent to close at $92.69 a barrel.

The increase was driven by concerns about disruptions to energy supplies from the Persian Gulf region, especially after the de facto closure of the Strait of Hormuz. At the same time, Qatar’s energy minister warned that Persian Gulf producers could halt exports in the coming weeks, which could push oil prices to $150 a barrel.

Financial markets were also affected by new data from the US economy. A government report showed that non-farm payrolls unexpectedly fell by 92,000 in February, although analysts had expected an increase.

(reuters, max)