Oil Prices Hit Four-Year High Amid Middle East Tensions

ERBIL (Kurdistan24) – Oil prices surged to a four-year high on Thursday amid fears of renewed conflict in the Middle East, before retreating later in the trading session, while global stock markets were buoyed by strong technology sector earnings.

International benchmark Brent crude jumped more than seven percent to reach $126 per barrel at one point, driven by concerns over escalating tensions between the United States and Iran. Prices later eased, slipping to around $110 per barrel—still nearly double their level prior to the recent escalation involving Washington and Israel.

Markets were rattled after U.S. President Donald Trump warned that a blockade of Iranian ports could last for months. Investors' concerns were further heightened by reports that he would be briefed on possible additional military strikes.

“Fears about escalation in the conflict between the US and Iran fueled the initial move higher before the market calmed down,” said Kathleen Brooks, research director at XTB.

Analysts also pointed to the expiry of monthly oil contracts as a factor contributing to volatile price movements.

Meanwhile, European stock markets closed broadly higher, supported by upbeat earnings from major U.S. technology firms. Shares in Alphabet Inc. climbed more than five percent, as investors welcomed its progress in artificial intelligence and strong revenue performance across key business segments.

In contrast, shares in Meta Platforms fell more than nine percent, weighed down by investor concerns over its substantial spending on AI development.

Overall, strong earnings results helped support market sentiment. “The earnings results have been supportive, and understandably so given that there has been a large number of very large beats” of forecasts, said Patrick O’Hare, analyst at Briefing.com.

In New York, both the Dow Jones Industrial Average and the S&P 500 were trading higher at midday, while the Nasdaq Composite was little changed.