Oil Prices Soar After US Sanctions
Oil prices surged on Thursday following the announcement of US sanctions targeting Russian oil companies, which contributed to the London Stock Exchange hitting a new record, while other financial markets cautiously absorbed new corporate earnings reports.
As of 16:20 GMT, the price of North Sea Brent crude rose by 5.46% to $66.02 per barrel, while US WTI crude gained 5.74% to $61.86.
"Oil prices skyrocketed after the US imposed sanctions on the two Russian giants, Rosneft and Lukoil, marking a strategic turning point that highlights Washington's growing frustration with Moscow," commented Neil Wilson, an analyst at Saxo Markets.
In London, the FTSE increased by 0.67%, surpassing its last peak from October 8 by one and a half points, reaching 9,578.57 points.
The main London index, known for its heavy weighting in commodities, benefited from the rise in crude prices. BP climbed 3.69% and Shell 3.15%.
Paris saw a 0.23% rise, as did Frankfurt, while Milan gained 0.41%.
"In light of President Putin's refusal to end this senseless war, the Treasury Department is imposing sanctions on the two largest oil companies that finance the Kremlin's war machine," explained US Treasury Secretary Scott Bessent.
Soojin Kim, an analyst at MUFG, noted a "major turning point in President Trump's policy, who had previously shown a willingness to negotiate with President Putin, but now cites Russia's lack of commitment to peace."
Europeans have also targeted the Russian oil sector, announcing a new set of measures against Moscow on Wednesday evening, marking the 19th since the Russian invasion of Ukraine in February 2022.
"There is a geopolitical premium being reinstated on a sector that needed it," commented Grégoire Kounowski, an investment advisor at Norman K, when interviewed by AFP.
Investors are focusing on corporate earnings while monitoring trade tensions.
"The Trump administration's proposal to impose new restrictions on software exports to China has revived concerns about new trade disputes," stated Patrick Munnelly, strategist at Tickmill Group.
President Trump will embark on a significant tour of Asia at the end of the week, which is expected to be highlighted by a highly anticipated meeting with Chinese President Xi Jinping. However, Trump has been inconsistent regarding these discussions, suggesting this week that they might "perhaps" not take place.
On Wall Street, around 16:00 GMT, the Nasdaq was up 0.78%, the S&P 500 up 0.43%, and the Dow Jones up 0.14%.
Among today's results, Tesla, a specialist in electric vehicles, fell 1.52% in New York after reporting a 37% drop in net income for Q3 to $1.37 billion, affected by rising operational expenses and tariffs.
Elsewhere in the US markets, American Airlines soared 5.25% in New York after announcing a less-than-expected net loss.
In Europe, Roche fell 3.17% in Zurich after posting disappointing quarterly sales.
In Paris, luxury group Kering surged 8.71% to €344.95 after reporting a decrease in revenue, but less severe than the market had feared.
Among the decliners, French software publisher Dassault Systèmes plummeted 12.98% to €26.21 after revising its 2025 targets downward.
The dollar remained stable against the euro at $1.1614 per euro (-0.01%).
"Every time we dip below 1.16, it's bought back up," noted Grégoire Kounowski, highlighting that inflation data from the US for September is expected on Friday.
The publication of the Consumer Price Index in the US has been pending for over two weeks due to the shutdown of US public services and budgetary impasse. "This could move the American currency," asserted the analyst from Norman K.