Global stocks mixed, oil lower as market digests latest on Iran

Global equities were mixed today, while oil prices retreated as markets weighed the latest developments in the war between Iran and Israel.

Markets rose after US President Donald Trump said he would allow for up to two weeks before possible US military action against Iran. But on Friday afternoon, Trump expressed doubt that European powers would be able to help end the Iran-Israel war, telling reporters, “Europe is not going to be able to help in this.”

Both the S&P 500 and Nasdaq finished lower following a choppy session. Analysts pointed to broad investor unease.

“We have a situation in the Middle East where missiles are still firing, there’s no ceasefire and there’s a fear that the US may be involved,” says Adam Sarhan of 50 Park Investments.

In light of uncertainty on Iran, trade and other areas, “investors are de-risking, they’re selling stocks ahead of the weekend,” Sarhan says.

The Brent international crude benchmark contract dropped more than two percent after Trump’s remarks, with analysts pointing to investor relief following fears that the United States could immediately join the Israeli campaign.

US oil prices fell more modestly because a US holiday on Thursday kept trading volumes low that day.

“News that President Trump would delay any decision on joining Israel’s attacks against Iran has boosted the market mood,” says Kathleen Brooks, an analyst at trading firm XTB.

“Brent crude has dropped… as traders price out the worst-case scenario for geopolitics.”