US stocks slipped on Thursday as a sharp jump in oil prices raised concerns about further disruption to global energy supplies amid growing fears that the United States could launch additional attacks on Iran.
Oil prices climbed by more than five per cent at one point after reports suggested the White House had asked the Pentagon to prepare options for possible strikes against Iranian targets ahead of next month’s US congressional elections.
Brent crude, the global oil benchmark, climbed as high as $105.48 per barrel, while US West Texas Intermediate (WTI) crude reached $92.84 before both benchmarks gave back some of their gains.
The potential for a wider conflict has added fresh uncertainty to financial markets, particularly as higher energy costs could increase pressure on consumers and businesses.
The Atlantic reported that the White House had asked the Pentagon to develop options for striking targets in Iran before the November 3 midterm elections.
With President Donald Trump’s Republican Party facing the possibility of losing control of both chambers of Congress, any further escalation could create additional political pressure on the administration.
However, analysts said the threat of military action could also be part of a broader strategy to pressure Tehran into negotiations aimed at ending the conflict.
“The planning (for possible fresh strikes) should be seen in the context of efforts to pressure Iran, bring energy prices down, and demonstrate progress in the conflict ahead of the election,” said Arne Lohmann Rasmussen, chief analyst at energy consulting firm Global Risk Management.
The tensions were further heightened after Yemen’s Houthi movement reportedly launched missiles towards Riyadh airport.
The group also warned employees at Saudi Arabian oil facilities to leave, raising concerns about potential attacks on energy infrastructure in the region.
Oil Surge Weighs on Global Stocks
The sharp rise in oil prices put pressure on stock markets across several regions.
Wall Street opened lower, with the major US indices all recording losses as investors assessed the potential economic impact of more expensive energy.
European markets were mixed. Frankfurt and Paris moved lower, while London’s FTSE 100 gained 0.2 per cent as higher crude prices supported major energy companies.
BP shares rose 3.3 per cent, while Shell gained 3.2 per cent during afternoon trading.
Asian markets also remained under pressure after technology stocks dragged Wall Street lower in the previous session.
South Korean technology giant Samsung saw its shares fall despite forecasting a major increase in quarterly profit, as the projected results still failed to satisfy market expectations.
In New York, SpaceX shares fell 0.9 per cent at the start of trading following a Financial Times report that Elon Musk’s company is seeking to raise around $40 billion through bank loans and debt.
The planned fundraising comes only four months after SpaceX completed an $86 billion IPO, which was described as the largest in the world.
The latest financing effort highlights the enormous capital requirements facing technology companies as they race to secure the chips and infrastructure needed for their artificial intelligence ambitions.
Currency Markets
Currency markets were also closely watched as investors assessed economic and political risks.
The euro remained near its lowest level since June 2025 amid concerns over France’s high debt levels, which have unsettled investors in the country’s bond market.
By around 1330 GMT, Brent crude was up 3.8 per cent at $104.04 per barrel, while WTI had gained 3.8 per cent to $91.59.
On Wall Street, the Dow Jones Industrial Average fell 0.4 per cent to 51,003.25 points, while the S&P 500 dropped 0.4 per cent to 7,774.82. The Nasdaq Composite declined 0.5 per cent to 27,410.88.
In Europe, the FTSE 100 gained 0.2 per cent to 10,480.74, while France’s CAC 40 fell 0.2 per cent to 7,756.92 and Germany’s DAX dropped 0.6 per cent to 24,960.41.
Asian markets recorded broader losses, with Japan’s Nikkei 225 falling 1.4 per cent to 69,042.11, Hong Kong’s Hang Seng declining 1.4 per cent to 23,785.79 and Shanghai’s Composite Index losing 0.8 per cent to 3,811.90.
The euro slipped to $1.1193, while the pound edged higher to $1.3212 against the dollar. The dollar also rose slightly against the yen to 158.17 yen.
Investors remain focused on developments in the US-Iran conflict, with any further military escalation potentially affecting oil supplies, inflation, financial markets and the wider global economy.
Source: AFP
