Energy & Resources
Oil falls back below $100 as markets weigh war and tariffs
Oil prices retreated on Friday after a sharp rise the previous day, while global stock markets diverged as investors weighed Middle East fighting, US tariff concerns and anxiety over heavy spending on artificial intelligence.
Brent North Sea crude fell back below $100 a barrel after surging past that level on Thursday. Around 1045 GMT, Brent was down 3.0 percent at $97.63 a barrel, while West Texas Intermediate was down 3.0 percent at $89.46. Brent had risen 7.0 percent on Thursday and WTI more than 6.0 percent after Yemen's Houthi rebels struck oil tankers in the Red Sea, opening a new front in the Middle East war. US President Donald Trump also threatened the rebels with "major military punishment".
Markets found some relief that some ships were still able to pass through the Bab al-Mandeb strait, an important route into the Red Sea, despite fresh US strikes on Iran on Friday. UBS commodities analyst Giovanni Staunovo said ships carrying Saudi crude were still crossing, meaning there was not yet a full blockade and reducing some risk of an even tighter oil market.
European stock markets rose after losses in leading Asian indices. London's FTSE 100 was up 0.3 percent, Paris's CAC 40 rose 0.3 percent and Frankfurt's DAX gained 0.8 percent. In Asia, Tokyo's Nikkei 225 closed down 2.7 percent, Hong Kong's Hang Seng Index fell 1.0 percent and Shanghai's Composite lost 1.6 percent. On Wall Street, the Dow had closed down 1.0 percent.
Data released Friday showed business activity in the eurozone grew for the first time in four months in July. S&P Global's eurozone purchasing managers' index rose to 51.9 from 50 in June. S&P chief business economist Chris Williamson said July was showing a revival in eurozone activity, while warning that the geopolitical environment remained volatile.
The source said UK markets had held up fairly well during the week as Andy Burnham took over from Keir Starmer as prime minister. In foreign exchange trading, the dollar fell against main rivals. The euro rose to $1.1394 from $1.1377 on Thursday, the pound rose to $1.3327 from $1.3315, and the dollar slipped to 163.71 yen from 163.85 yen.
Technology shares remained under pressure as investors questioned when large AI investments would produce returns. Alphabet shares fell almost 7.0 percent and Tesla dropped more than 14.0 percent on Thursday after scrutiny of their capital spending plans. Meta, Microsoft and Amazon have already indicated they will spend more than $700 billion this year on AI ambitions and are due to report results next week.
Update
Brent crude fell back below $100 after rising above that level the previous day.
Brent and West Texas Intermediate were both down 3.0 percent around 1045 GMT.
European stock markets rose after losses in Asia, while the dollar fell against major rivals.
S&P Global data showed eurozone business activity grew in July for the first time in four months, with a PMI reading of 51.9 after 50 in June.
The source said UK markets held up fairly well during the week as Andy Burnham took over from Keir Starmer as prime minister.
Updated market figures were provided for oil, major equity indices and currencies.
Source note: AFP news report published on 24 July 2026 at 11:05:53 UTC.
Update
London, Paris and Frankfurt reversed early losses and moved into positive territory in the morning.
Alphabet fell almost seven percent and Tesla fell more than 14 percent after scrutiny of large capital spending plans.
An index of the Magnificent Seven lost almost $800 billion in market value, its biggest one-day fall since April 2025.
Brent crude rose to $102 on Thursday, then traded just below $100 on Friday.
The source added detailed closing or morning levels for major stock indexes, oil, currencies and Wall Street.
Source note: AFP news report published on 24 July 2026 at 08:30:15 UTC.
Update
Alphabet fell almost 7 percent and Tesla fell more than 14 percent after scrutiny of their capital spending plans.
An index of the US Magnificent Seven lost almost $800 billion in market value in its biggest one-day fall since April 2025.
Seoul fell more than 3 percent, with Samsung down more than 7 percent and SK hynix down more than 8 percent.
Brent crude jumped to $102 on Thursday before easing to just below $100 on Friday.
The report says Houthi rebels struck Saudi Arabia's shipping in the Red Sea and declared a blockade of Saudi ports.
Washington said it would impose new 10 percent to 12.5 percent tolls on dozens of trading partners, including China and India, over forced labour concerns.
Key figures around 0715 GMT included the Nikkei down 2.7 percent, Hang Seng down 1.5 percent, Shanghai Composite down 1.6 percent and the Dow down 1.0 percent at Thursday's close.
Source note: AFP news report published on 24 July 2026 at 07:39:17 UTC.
Uncertainty notes
The source says investors are questioning when large AI spending will generate returns; it does not say when that may happen.
Source
AFP news report published on .