World stock markets tumbled on Friday and oil prices surged as Israel launched military strikes on Iran, sparking a rush into safe havens such as gold and the dollar.
An escalation in the Middle East – a major oil-producing region – adds uncertainty to financial markets at a time of heightened pressure on the global economy from US President Donald Trump’s trade policies.
Dublin
The Irish index of shares retreated 1.6 per cent on Friday as the impact of Israel’s attack on Iran weighed on stocks.
Banking stocks were down, with AIB losing 1.5 per cent and Bank of Ireland shedding 1.7 per cent by the end of the day. Permanent TSB gained more than 2 per cent.
Heavyweights on the Euronext Dublin were red across the board. Glanbia lost 1.3 per cent while Kerry escaped with a milder decline of just under half a per cent. Insulation specialist Kingspan saw its stock dip to €76.10, a 2.6 per cent decline.
Travel and leisure stocks also took a hit, mirroring the impact across the wider global markets as crude oil prices rose. Ryanair fell 2.4 per cent to close the day at €23.28, while Dalata hotel group was almost 1 per cent off the pace.
London
London’s FTSE 100 fell back on Friday after closing at a record high in the previous session as Israel’s attacks on Iran ramped up geopolitical tensions, but gains in energy stocks limited declines.
The blue-chip FTSE 100 closed down 0.4 per cent, less than 1 per cent away from an intraday record high.
British Airways owner ICAG fell 3.7 per cent, EasyJet dropped 2.7 per cent, while Wizz Air was down 5.6 per cent. Global airlines cleared out of airspace in the Middle East, diverting flights.
London-listed shares of cruise operator Carnival were down 3.4 per cent.
Gains in commodity-linked stocks capped declines in the blue-chip index, with energy shares rising 0.8 per cent, boosted by oil giants Shell and BP.
The midcap FTSE 250 slid 1 per cent, recording its steepest single-day fall in more than two months.
Gas producer Energean dropped 5.1 per cent after it said it had temporarily suspended the production and activities of its power floating production storage and offloading located off northern Israel.
Europe
The pan-European STOXX 600 index fell 0.9 per cent, briefly hitting its lowest level in three-weeks.
Most STOXX subsectors clocked losses, with auto stocks leading declines, down 2.2 per cent.
Travel and leisure also dropped 2 per cent – with airline operators ICAG and Lufthansa among the biggest laggards.
Energy stocks advanced as crude oil prices jumped close to 6 per cent on worries about a disruption in Middle East oil supplies.
Shipping group Maersk advanced 4.2 per cent as analysts flagged upside risks to freight rates amid the supply disruptions.
New York
Oil prices surged nearly 7 per cent on fears the conflict could disrupt crude supply from the Middle East. US energy stocks rose in tandem, with Exxon up 1.7 per cent and Diamondback Energy rising 3.2 per cent.
Delta Air Lines was down 2.1 per cent, United Airlines fell 2.6 per cent and American Airlines declined 3.2 per cent.
Defence stocks climbed, with Lockheed Martin up 3.4 per cent, RTX Corporation gaining 3.3 per cent and Northrop Grumman rising 3.5 per cent.
“I think the market understands that this is a continuation of the war between Iran and Israel ... I don’t think the market expects it to escalate too dramatically from here,” said Jed Ellerbroek, portfolio manager at Argent Capital Management.
At midday, the Dow Jones Industrial Average fell 453.51 points, or 1.06 per cent, to 42,514.11, the S&P 500 lost 32.29 points, or 0.53 per cent, to 6,012.97, and the Nasdaq Composite dropped 127.05 points, or 0.65 per cent, to 19,535.43. – Additional reporting: Reuters
