Oil at months-high, European stock markets slow down on Iran fears

Brent rose 3.1%, surpassing $112 a barrel, while the US benchmark crude, WTI, gained 2.9%, approaching $100. This is reported by Il Mattino and Investing.com Italia, in a session that saw European stock markets close lower.

On Piazza Affari the Ftse Mib lost 1.67%, while the price of gas remained at highs not seen since December 2022, above 89 euros per megawatt-hour, according to data reported by Il Mattino.

Behind the rise in crude oil are reports, cited by Investing.com Italia, of possible plans by the United States and Israel for new attacks against Iran following the US midterm elections of November 3, in addition to attacks claimed by the Houthis against oil infrastructure in Saudi Arabia. These are, at this stage, reports not confirmed by official US, Israeli or Iranian sources: none of the parties involved has issued verifiable statements on the plans mentioned.

Il Mattino also links the tension in energy markets to the situation in the Strait of Hormuz, a crucial chokepoint for the transport of crude oil from the Persian Gulf, pointing to the risk that rising energy prices could translate into new inflationary pressures and a possible intervention by central banks. Investing.com Italia also notes that the negative session for European stock markets was also weighed down by a decline in US technology stocks, on a day marked by several concurrent factors on the markets.

The two outlets report figures and circumstances consistent with one another, but the news of attack plans remains, for now, a report: no institutional or military source has confirmed it publicly. The next useful reference point for assessing the impact on energy markets will be the performance of Brent and WTI prices in subsequent sessions, together with any official communications from Washington, Tel Aviv or Tehran.

Sources: Il Mattino; Investing.com Italia