Crude Oil Prices Surge Further, Global Stocks Extend Gains As Middle East Tension Persist

Global oil prices rose sharply on Tuesday, with major crude benchmarks hovering around the $100 mark, as geopolitical tensions in the Middle East continued to unsettle energy markets.

Naija News reports that the gains came after prices briefly retreated the previous day following remarks by the head of the International Energy Agency, Fatih Birol, who suggested that additional strategic stockpiles could be released if necessary to stabilise supply.

Birol had indicated that member countries could tap into emergency reserves to ease supply pressures triggered by the ongoing crisis.

Last week, the agency and its partners had already agreed to release a record 400 million barrels from strategic reserves.

Despite this, oil prices rebounded, reflecting persistent concerns about supply disruptions linked to the closure of the Strait of Hormuz.

Amid the escalating crisis, former US President Donald Trump called on allies in Europe and beyond to support efforts to reopen the critical shipping route, which Iran has effectively shut.

He stated over the weekend that securing the waterway “should have always been a team effort, and now it will be.”

However, the call received a lukewarm response from key allies.

German Chancellor Friedrich Merz said the conflict, triggered by US-Israeli strikes on Iran, was “not a matter for NATO.”

Countries including Britain, Spain, Poland, Greece and Sweden also distanced themselves from the proposal, while Australia and Japan opted not to participate.

Trump later warned in an interview with the Financial Times that it would be “very bad for the future of NATO” if allies declined involvement, and disclosed that he had requested a delay in a planned summit with Chinese leader Xi Jinping over the issue.

Tensions remained high as attacks on energy infrastructure in the region persisted.

Drones struck major oil fields in the United Arab Emirates and Iraq on Monday, while Israel announced a “wide-scale wave of strikes” in Tehran and against Hezbollah targets in Beirut.

In a related development, a drone and rocket attack targeted the US embassy in Baghdad early Tuesday, according to a security official.

Despite the spike in oil prices, global equities extended their gains, supported largely by a rally in technology stocks.

Investor sentiment was boosted after chip giant Nvidia projected that it could generate at least $1 trillion in revenue by the end of 2027.

The upbeat forecast provided relief to markets rattled by geopolitical uncertainty, helping major indices across Asia post gains.

Asian Markets Post Strong Gains

Stock markets in Seoul led the rally, driven by strong performances from chipmakers such as Samsung and SK hynix.

Other major markets, including Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Taipei and Manila, also recorded notable gains.

The positive momentum followed a strong session on Wall Street, where the three major indices closed higher.

However, analysts cautioned that market optimism could be short-lived given the ongoing uncertainty.

According to Pepperstone analyst Chris Weston: “Conviction behind a sustained rally in risk assets remains relatively low, although it is important to stay open-minded to the possibility that momentum could build.”

He added that while developments such as potential oil releases and tanker movements were encouraging, they did not signal a definitive de-escalation of tensions.

“It is difficult to view these developments as a definitive de-escalation or a true circuit breaker for the energy risk premium,” he said.

As of around 0230 GMT, key indicators showed oil and equity markets trending upward:

Key Figures At Around 0230 GMT

• West Texas Intermediate: UP 2.4 per cent at $95.77 per barrel
• Brent North Sea Crude: UP 2.6 per cent at $102.84 per barrel
• Tokyo – Nikkei 225: UP 0.5 per cent at 54,013.73 (break)
• Hong Kong – Hang Seng Index: UP 1.5 per cent at 26,224.17
• Shanghai – Composite: UP 0.5 per cent at 4,103.72
• Euro/dollar: DOWN at $1.1493 from $1.1510 on Monday
• Pound/dollar: DOWN at $1.3307 from $1.3327
• Dollar/yen: UP at 159.37 yen from 159.14 yen
• Euro/pound: UP at 86.38 pence from 86.36 pence
• New York – Dow: UP 0.8 per cent at 46,946.41 (close)
• London – FTSE 100: UP 0.6 per cent at 10,317.69 (close)

On the currency front, the dollar strengthened against the yen, while the euro and pound edged lower against the US currency.

Market participants are now turning their attention to a series of central bank meetings scheduled for the week.