Oil Prices Soar as Iran-U.S. Conflict Intensifies
The Iran-U.S. conflict escalated on Wednesday, driving oil prices higher as tensions between the two nations intensified.
The FTSE 100 index fell 0.3%, while Germany's DAX dropped 0.5% and France's CAC slipped 0.3%. Sterling weakened against the dollar, down 0.1% at $1.3502.
Iran's Revolutionary Guards said they struck U.S. bases in several countries overnight, including Jordan, the UAE, Kuwait, Bahrain, and Iraq's Kurdistan region. The attacks followed a wedding strike in southern Iran that Tehran says killed four people, including a four-year-old boy.
The U.S. Treasury Secretary Scott Bessent warned that airlines, shipping, and digital assets could be the next targets of economic pressure. He cautioned other countries to 'stay away' from supporting Iran's economy, which he described as 'totally collapsing'. President Donald Trump tweeted that he is 'not trying to force Iran to the bargaining table', citing 'almost total control' of the Strait of Hormuz.
Oil prices surged 1.1% to $95.66 a barrel in London, while Brent crude gained 0.7% to $90.81. Gold rose 1% to $4,370.71 an ounce, and Bitcoin jumped 0.5% to $4,416.66.