Global equities eased and oil prices climbed on the last trading day of the week as renewed clashes involving the US and Iran in the Middle East reignited concerns over energy supply disruptions, interrupting a record-setting run in global stock markets, according to a report by Bloomberg.
The MSCI All Country World Index slipped around 0.2%, while Asian equities fell nearly 0.9% from recent highs, reflecting a cautious tone after a strong multi-week rally driven by optimism around artificial intelligence-linked earnings growth and expectations of easing geopolitical risk.
Investor sentiment weakened after reports of naval incidents in the Strait of Hormuz and retaliatory strikes, raising fears that a key global energy chokepoint could face further disruption. Brent crude rose about 1% to just above $100 per barrel, though it remained lower for the week overall as traders continued to price in a volatile but contained supply backdrop.
US equity futures pointed to a tentative stabilisation, with S&P 500 contracts slightly higher and Nasdaq 100 futures also edging up, supported in part by strong technology earnings signals from major semiconductor producers. However, broader risk appetite remained uneven as markets weighed geopolitical risk against resilient corporate fundamentals.
Despite sharp headlines, some investors continued to view the latest escalation as a manageable risk scenario rather than a full-scale shock. Market participants noted that equities have largely focused on de-escalation hopes, while energy markets continue to reflect a geopolitical premium tied to supply security concerns.
In foreign exchange, the US dollar remained broadly steady near pre-conflict levels, while US Treasury yields held firm, with inflation expectations influenced by elevated energy prices. Gold advanced as investors sought traditional defensive exposure amid uncertainty.
Attention also turned to broader policy and trade developments, including renewed legal scrutiny of US tariff measures, alongside ongoing global earnings releases that continue to be shaped by the artificial intelligence investment cycle.
Despite the volatility, global equities remain on track for weekly gains in several regions, highlighting an ongoing tension between short-term geopolitical shocks and longer-term optimism around corporate earnings momentum and technology-led growth.
