Calm returns to markets in Europe but oil prices climb higher on Iran war

Brent crude lifted another 3% at 84.5 US dollars a barrel at one stage – its highest level since July 2024. NewsBusinessCalm returns to markets in Europe but oil prices climb higher on Iran warBrent crude lifted another 3% at 84.5 US dollars a barrel at one stage – its highest level since July 2024.Holly Williams Wednesday 04 March 2026 09:30 GMTBookmarkBookmark popoverRemoved from bookmarksClose popoverThe US-Israel war with Iran threatens to spark an energy supply crunch and experts have warned of ongoing volatility (Alamy/PA)Your support helps us to tell the storyRead moreSupport NowFrom reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.Your support makes all the difference.Read moreStock markets in Europe have steadied after two days of punishing falls but oil prices continued to climb higher as the US-Israel war with Iran threatens to spark an energy supply crunch and experts warned over ongoing volatility.London’s FTSE 100 Index was largely unchanged in early trading on Wednesday, down just 0.4 points at 10483.8, having slumped nearly 3% on Tuesday amid fears over a prolonged conflict.Markets were also pulling out of their nosedive across Europe, with the Cac 40 in France 0.3% higher and the Dax in Germany unchanged, despite heavy overnight declines in Asia.The cost of crude extended gains further, however, with Brent crude up another 3% at 84.5 US dollars a barrels at one stage – its highest level since July 2024.Oil and gas prices have been sent soaring amid disruption to supplies in the Middle East, with Iran threatening to block key shipping route the Strait of Hormuz and Qatar halting production of liquified natural gas on Monday following attacks on its facilities.About a fifth of the world’s oil and gas flows through the Strait of Hormuz, which is a narrow waterway between Iran and the United Arab Emirates.US President Donald Trump said on Tuesday the US Navy would protect ships in the region “if necessary” to protect oil supplies.Neil Wilson, Saxo UK investor strategist, said European markets were “licking their wounds after yesterday’s bruising session”, but he cautioned over more volatility.He said: “The war goes on and despite significant losses already for European and Asian equity markets, it seems too soon to be confident the worst is behind us, it’s hard to see a real recovery take hold until the shooting stops.“Signs of a tentative stabilisation in Europe this morning are welcome but could be premature.“We’ve seen wide-scale de-risking but there may be more to come in terms of a structural decline in equity valuations should the economic effects start to be felt through trade, energy and inflation channels.”He added that further oil price rises showed “markets are not buying President Trump’s promise to protect and insure shipping in the region”.He added: “The fact is it’s just not feasible to reasonably protect all ships in the region.”More aboutEuropeStrait of HormuzIranBrentStock MarketsMost popularPopular videosBulletinRead next