By Tracy Cabrera
MANILA — Global financial markets braced for another turbulent trading day as escalating tensions in the Middle East pushed crude oil prices back above the $100-per-barrel mark.
Oil prices climbed by about $2 as the United States temporarily eased sanctions, allowing some countries to purchase Russian oil shipments currently stranded at sea. The move was aimed at stabilizing global energy supply amid rising geopolitical risks.
In a statement, U.S. Treasury Secretary Scott Bessent said the short-term waiver was intended to promote “stability in global energy markets,” while stressing that the measure would not provide significant financial gains for the Russian government.
Despite the policy adjustment, market sentiment remains fragile. Analysts warned that hopes for a quick resolution to the Middle East conflict are rapidly fading, raising the possibility of prolonged volatility in global markets.
In London, the FTSE 100 index dropped by as much as 0.8 percent at the opening bell, tracking declines across European markets. The index later trimmed losses but was still down 0.4 percent to 10,261 points in morning trading.
Economic concerns are also mounting. Recent data showed that the economy stalled in January, even before the latest geopolitical tensions escalated, prompting fears that rising energy costs could further weaken business confidence.
Susannah Streeter, chief investment strategist at Wealth Club, warned that higher energy prices could pressure companies already facing economic uncertainty.
“It doesn’t bode well for corporate resilience,” Streeter said, noting that many businesses may delay investments and adopt defensive strategies while waiting for the crisis to ease.
Efforts to stabilize oil markets have included the International Energy Agency’s release of a record 400 million barrels from emergency reserves and the partial easing of Russian oil restrictions. However, these measures have yet to ease concerns over potential disruptions to global oil and gas supplies.
The situation remains complicated by developments in Iran. The country’s new supreme leader, Mojtaba Khamenei, has vowed to maintain the blockade of the Strait of Hormuz, a critical shipping route for global oil supplies.
Meanwhile, U.S. President Donald Trump has proposed escorting oil tankers through the strait, although analysts say such a plan may be difficult to implement in the current geopolitical climate.
Financial stocks have also come under pressure, particularly banks with operations in the Middle East, as some institutions temporarily suspend operations amid fears of further attacks.
“Banks with significant exposure to the region have suffered losses this week,” Streeter said, adding that investors are worried about how prolonged conflict could affect consumer and business sentiment.
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