Oil prices slipped and global equity markets posted mixed results on Thursday as investors awaited further details on a U.S.‑backed initiative to end the Middle‑East conflict and reopen the Strait of Hormuz.
Crude oil fell after a sharp rally on Wednesday, when peace hopes briefly drove the benchmark Brent contract below $100 a barrel. By the close of trade, Brent was down 2.6 % at $98.61, while U.S. West Texas Intermediate slid 2.9 % to $92.36.
Equity markets reflected the uneven sentiment. In the United States, the Dow Jones Industrial Average edged lower 0.2 % to 49,835.39, while the S&P 500 rose 0.1 % to 7,374.66 and the Nasdaq Composite gained 0.5 % to 25,971.26, each touching fresh record highs. European indices fell after strong gains the previous session: the FTSE 100 dropped 1.6 % to 10,276.95, the CAC 40 slipped 1.2 % to 8,202.08, and the DAX decreased 1.0 % to 24,663.61. Asian markets moved higher, led by Japan’s Nikkei 225, which jumped 5.6 % to 62,833.84 following the end of a public‑holiday break. Hong Kong’s Hang Seng Index rose 1.6 % to 26,626.28 and Shanghai’s Composite advanced 0.5 % to 4,180.09.
Currency markets showed a modest shift away from the U.S. dollar’s safe‑haven status. The euro appreciated to $1.1768, the pound to $1.3614, and the yen to 156.44 per dollar.
The price decline in oil coincides with ongoing diplomatic talks. U.S. President Donald Trump indicated that a settlement could be near after “positive talks,” while Iran signalled it would convey its latest position to mediator Pakistan. Analysts caution that optimism over a rapid de‑escalation is fading as further hurdles to a lasting resolution emerge.
Norway’s central bank raised its policy rate by 0.25 percentage points to 4.25 % on Thursday, citing the risk that the Middle‑East conflict could exacerbate already elevated inflation in the region.
Outside the geopolitical narrative, technology earnings continued to drive market activity. Strong results from Apple, Alphabet, Microsoft and Samsung have bolstered investor demand for artificial‑intelligence‑related stocks, prompting some market participants to describe the current rally as a “melt‑up.” Nonetheless, concerns remain about the potential for a sharp pullback.
The Emirates Group reported a 3 % increase in annual profit to $5.7 billion despite flight disruptions caused by the war.
The coming days are likely to be pivotal as further details on the U.S. peace proposal emerge, potentially influencing oil supplies, trade routes through the Strait of Hormuz and broader market sentiment.
