Oil Jumps Above $100 as S&P 500 and FTSE Fall

Oil surged above $100 per barrel early Thursday as Iran intensified attacks on shipping in the Gulf, raising fears of supply disruptions. The S&P 500 and Dow closed lower on Wednesday while the Nasdaq edged higher, with Oracle jumping after upbeat guidance tied to artificial intelligence demand. In London, the FTSE 100 finished lower despite gains in energy majors BP and Shell as crude prices climbed. The US dollar strengthened while sterling slipped to $1.3374.

Equities

The FTSE 100 closed lower on Wednesday as rising oil prices and the ongoing conflict involving Iran weighed on sentiment across European markets. London’s benchmark index ended the session down 0.5%, while the FTSE 250 slipped 0.4%. Energy stocks provided some support, but most other sectors finished in negative territory as investors assessed the potential economic impact of disruptions to oil shipments through the Strait of Hormuz. Brent crude traded above $90 per barrel during the session despite the International Energy Agency agreeing to release around 400 million barrels of oil from strategic reserves to ease supply pressures.

Among individual UK stocks, energy producers moved higher alongside crude prices. Shell closed 1.9% higher on Wednesday, while BP ended the session up 2.8%. The rise in oil prices followed concerns about shipping disruptions in the Gulf region, which could tighten supply in global energy markets.

Several UK-listed companies moved sharply following corporate updates. Legal & General closed 6.7% lower on Wednesday after reporting full-year results that missed analysts’ profit forecasts. The insurer also reported a lower solvency ratio as chief executive Antonio Simões continues a strategic overhaul of the business. Recruitment firm Robert Walters fell 7.9% after cancelling its final dividend for 2025. The company reported a swing to an annual pre-tax loss, citing weakness in the employment market. In contrast, construction group Balfour Beatty closed 8.9% higher after forecasting a high-single-digit increase in operating profit for 2026. The company also highlighted a record order book, supported by UK power infrastructure projects including nuclear energy developments.

In the United States, equity markets ended Wednesday’s session with mixed results. The Dow Jones Industrial Average fell 0.61% to 47,417.27, while the S&P 500 edged down 0.08% to 6,775.80. The Nasdaq Composite closed 0.08% higher at 22,716.14 after gains in semiconductor stocks supported the technology sector.

Oracle shares jumped 9.2% on Wednesday after the company issued stronger-than-expected revenue guidance. Management said demand linked to artificial intelligence infrastructure is expected to remain strong through 2027. In financials, Ares Management closed 4.8% lower and Apollo Global Management fell 1.9% after reports that JPMorgan Chase had marked down the value of certain loans tied to private credit funds and was tightening lending to the sector.

Consumer goods company Campbell’s dropped 7.1% after cutting its annual forecast and warning that revised US tariffs could weigh on performance in the second half of the year. Defence technology group AeroVironment fell 6.3% after issuing a 2026 adjusted profit forecast below analysts’ expectations.

Forex & Commodities

Early on Thursday, the US dollar remained close to its strongest levels of the year as rising oil prices and geopolitical tensions reshaped expectations for central bank policy. The dollar strengthened against several major currencies during Asian trading. The euro moved down to $1.1540, while the Japanese yen weakened past ¥159 per dollar before settling near ¥159.2. Sterling also edged lower, trading around $1.3374. Currency moves reflected shifting interest-rate expectations as investors scaled back expectations for near-term US monetary easing.

Gold prices slipped early on Thursday as the stronger dollar reduced demand for bullion. Spot gold traded near $5,167 per ounce during the morning session. The move came despite continuing conflict in the Middle East, which has raised broader geopolitical concerns. Investors are now focused on upcoming US economic data, particularly the delayed release of January’s Personal Consumption Expenditures index scheduled for Friday. Recent figures showed US consumer prices rising 0.3% in February and 2.4% on an annual basis, reinforcing expectations that the Federal Reserve may keep policy tighter for longer. Market pricing now suggests the central bank could hold rates steady through July, with the first potential cut pushed back towards the autumn.

Oil prices remained elevated early on Thursday as tensions involving Iran disrupted shipping through the Strait of Hormuz. Brent crude briefly traded above $100 per barrel earlier in the session before easing to around $96.45, while US West Texas Intermediate crude traded close to $91.30. Iran warned that crude prices could climb as high as $200 per barrel if instability persists. The International Energy Agency has agreed to release around 400 million barrels from strategic reserves in an effort to ease supply pressures, although analysts caution the measure may only provide temporary relief if tanker traffic through the region remains restricted.