Oil Prices Plummet as Middle East Strikes Ease Market Fears

The global oil market witnessed a significant downturn on Friday, as Brent North Sea crude dropped by nearly four percent to under $97 per barrel. This comes after prices surged past $100 on Thursday due to escalating Middle East strikes, particularly Yemen's Houthi rebels attacking oil tankers in the Red Sea.

Despite US-launched fresh strikes against Iran, markets showed relief that some ships were still able to pass through the Bab al-Mandeb Strait, a crucial passage into the Red Sea. A commodities analyst at Swiss bank UBS noted that 'ships with Saudi crude are still crossing…so for now, it is not a full blockade, reducing a bit the risk of an even tighter oil market.'

The decline in oil prices helped stabilize US and European stock markets on Friday, with both the Dow and S&P 500 seeing gains. However, the Nasdaq retreated again, particularly semiconductor shares enduring selling pressure.