Oil Prices Decline Despite Ongoing Israel-Iran Strikes Entering Fourth Day

Stocks climbed and oil prices declined today as investor concerns over a broader Middle East conflict eased, despite Israel and Iran continuing to exchange missile fire for a fourth consecutive day, The Caspian Post reports citing foreign media.

“European shares were surprisingly resilient against a backdrop of uncertainty,” said Russ Mould, investment director at AJ Bell.

“The Middle East conflict remains a fluid situation and there is the potential for markets to still experience sudden jolts if the tension escalates further,” he cautioned.

London, Paris and Frankfurt stock markets were all higher in midday trade. That tracked gains in Asia, where Tokyo closed up 1.3 per cent, boosted by a weaker yen, while Hong Kong and Shanghai also advanced.

Israel’s surprise strike against Iranian military and nuclear sites on Friday - killing top commanders and scientists - sent crude prices soaring as much as 13 per cent at one point on fears about supplies from the region.

However, concerns over the conflict spreading appeared to have eased, with both main oil contracts retreating today.

“Financial markets are very good at absorbing geopolitical risk, and Opec+’s supply boost is also helping to cushion the blow,” said Kathleen Brooks, research director at trading group XTB.

“There may need to be a major escalation in the conflict before we get another sharp upswing in oil and gold prices,” she added.