Brent oil tops $72 as Trump threatens Iran

Brent oil topped $72 a barrel, hitting a 6 1⁄2-month high, after US President Donald Trump set a 10–15 day deadline for Iran to curb its nuclear ambitions or face force. The dollar headed for its strongest weekly rise in four months as traders positioned for potential conflict. Private equity stocks slid after Blue Owl’s move to return capital and scrap quarterly redemptions unsettled investors. Broader markets were cautious heading into the weekend.

Equities

The FTSE 100 fell 0.5% on Thursday, pulling back from record highs set earlier in the week, while the FTSE 250 slipped 0.4%. The decline in London was led by weakness in mining and energy stocks as US-Iran tensions unsettled sentiment and a firmer dollar weighed on metals prices.

Rio Tinto closed 3.6% lower after reporting flat annual earnings. Lower iron ore prices hit its core business, offsetting stronger performance in copper. The update disappointed investors who had hoped for stronger momentum from the mining giant. Other London-listed miners also retreated as copper prices softened amid higher inventories and reduced demand during China’s Lunar New Year holiday.

Centrica fell 5.1%, the steepest drop on the FTSE 100, after the British Gas owner warned that profit at its energy trading arm would miss forecasts in 2026. The group also paused its share buyback programme following a 39% decline in annual profit. The statement from management underlined a tougher outlook for parts of its trading operations.

On Wall Street, the S&P 500 closed 0.28% lower, the Nasdaq fell 0.31% and the Dow Jones Industrial Average dropped 0.54% on Thursday. Losses in private equity stocks and weakness in major technology names offset strength in selected industrial shares.

Blue Owl Capital tumbled 6% after announcing the sale of $1.4 billion in assets and freezing redemptions at one of its funds. The move weighed on peers, with Apollo Global Management, Ares, KKR and Carlyle all closing between 1.9% and 5.2% lower. Apple slipped 1.4%, exerting the biggest drag on the S&P 500, while Walmart also fell 1.4% after its new chief executive outlined a cautious fiscal 2027 outlook alongside a $30 billion share buyback.

EPAM Systems plunged 17% after issuing a cautious first-quarter outlook. Carvana dropped almost 8% after missing quarterly profit estimates. In contrast, Deere jumped 11.6% after raising its full-year profit forecast, and Omnicom surged 15% after beating fourth-quarter revenue expectations.

Forex & Commodities

The US dollar was on course for its strongest week since October, trading early this morning around 98.00 against a basket of currencies and holding near a one-month high. Support came from firmer US data and a more hawkish tone in the latest Federal Reserve minutes, which showed several policymakers remain open to further rate rises if inflation proves persistent. Tensions between Washington and Tehran also underpinned demand for the greenback. Sterling slipped to $1.3450, close to a one-month low, while the euro edged down to $1.1750. The yen weakened to ¥155.3 per dollar after Japanese core inflation slowed to 2.000% in January, dampening expectations of imminent Bank of Japan tightening.

Spot gold traded at $5,021 early in the session, but remained on track for a weekly decline as the stronger dollar weighed on prices. Investors are awaiting the latest US personal consumption expenditures figures for further clarity on the Fed’s policy path, with rate cut expectations for mid-year pared back slightly.

Oil prices held near six-month highs. Brent crude traded at $71.99 and US West Texas Intermediate at $67.05, both set for a weekly rise as geopolitical risk in the Middle East intensified. President Donald Trump has given Iran 10 to 15 days to reach a nuclear agreement, while Tehran has threatened retaliation and announced joint naval drills with Russia. US inventory data showing a sizeable draw in crude stocks also lent support, although analysts continue to point to ample global supply and the prospect of increased OPEC+ output from April.