Oil extends gains on US-Iran tensions, stocks retreat

The US benchmark oil contract WTI rose to a six-month high

• Oil prices rise on US-Iran tensions and stalled nuclear talks
• US stocks fall as Fed minutes hint at delayed rate cuts
• Asian markets gain, led by Seoul's record high after holiday

Did our AI summary help?

Oil prices pushed higher Thursday on worries that nuclear talks between the United States and Iran might not avert a new conflict that could threaten supplies.

On stock markets, a rally across Asia following gains by US tech heavyweights failed to bolster indices in Europe and the United States, where traders focussed on a string of corporate results.

The gains for oil extended a surge seen Wednesday, after the White House warned that Iran would be "wise" to do a deal with the United States.

US President Donald Trump once again hinted at a strike on Tehran on his Truth Social site, with a US military buildup under way in the Middle East.

"Oil is extending its gains, with Brent crude back above $70 a barrel... as fears of a military confrontation between the US and Iran rattled energy markets," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

"Nuclear talks between the two sides appear to be going nowhere fast, and the geopolitical premium is clearly back in play," he added.

The US benchmark oil contract WTI rose to a six-month high.

"The US has moved a stack of military assets into the region, and this is unnerving investors," said Trade Nation analyst David Morrison.

Wall Street's main indices were in the red in late morning trading.

Morrison said the minutes of its last meeting of the Federal Reserve's monetary policy committee released late Wednesday were also affecting sentiment.

"These were viewed as more hawkish than expected, and this added some downward pressure on equities," he said.

He noted that some members indicated they want to wait to see inflation fall further before cutting rates again, while others indicated the next move could be a hike in rates.

Recent strong data on the US economy has suggested that the Fed might not need to cut rates any time soon.

Shares in Walmart initially rose more than two percent as traders focussed on solid fourth-quarter results and not its forecasts for slower growth, but later dipped into the red.

Major European indices finished the day lower, with shares in plane maker Airbus down 7.2 percent in Paris after its annual results fell short of analysts' expectations.

Shares in French carmaker Renault fell 3.1 percent in Paris after it posted higher 2025 sales but warned of slipping profit margins from increased sales of electric and hybrid vehicles.

In London, disappointing earnings from mining giant Rio Tinto and energy group Centrica weighed on the blue-chip FTSE 100 index.

In Asia, Seoul's Kospi led gains, jumping more than three percent to a record high as it reopened after the Lunar New Year break, with chip giants Samsung and SK hynix once again the standout performers.

Tokyo also advanced while Hong Kong, Shanghai and Taipei remained closed for the Lunar New Year holiday.

Asian stocks are enjoying a strong start to the year as investors turn to the region's relatively cheaper tech plays after Wall Street's AI-fuelled surge over the past two years.