Energy and utilities lead gains while investors monitor supply risks in the Strait of Hormuz
MARKET INSIDER – European markets edged higher Friday as investors assessed the ongoing Middle East conflict and its impact on energy prices and global growth.
The Stoxx Europe 600 rose about 0.2% during midday trading in London, reversing earlier losses. Gains were led by oil and gas, insurance, and utilities stocks, while industrial and mining shares lagged the broader market.
Energy markets remain the central focus for investors. Brent crude traded just below $100 per barrel, while West Texas Intermediate hovered around $93. Oil prices have surged roughly 20% since the start of the week as the war involving United States, Israel, and Iran raises fears of prolonged supply disruptions.
The crisis is centered around the Strait of Hormuz, a narrow maritime corridor through which roughly one-fifth of global oil and gas flows. Shipping traffic has slowed dramatically after attacks on commercial vessels and threats from Iran to block the channel entirely.
Governments are scrambling to stabilize markets. The International Energy Agency earlier this week announced a record 400 million barrel release from emergency oil reserves. Meanwhile, the United States confirmed plans to release 172 million barrels from the Strategic Petroleum Reserve in an effort to ease supply concerns.
Despite these measures, analysts say energy markets remain fragile. Iran’s newly appointed leader Mojtaba Khamenei signaled that Tehran could continue blocking shipping through Hormuz, suggesting disruptions may persist.
In currency markets, the British pound sterling weakened against both the U.S. dollar and the euro after preliminary data showed the United Kingdom economy stalled in January.
Corporate developments also moved individual stocks. Shares of Deutsche Bank recovered after the lender disclosed about $30 billion of exposure to the private credit market. Meanwhile, Dutch chip equipment firm BE Semiconductor Industries jumped roughly 6% amid takeover speculation.
Looking ahead, investors remain focused on energy markets and geopolitical developments. If oil prices remain near or above $100 per barrel, the conflict could weigh on corporate earnings, inflation expectations, and global growth prospects—keeping markets volatile across Europe and beyond.
