US Stocks Decline As Oil Prices Rise Amid Iran War Worries

Oil prices soared more than five percent Thursday following reports that the United States could launch fresh attacks on Iran before next month’s midterm elections, risking further supply disruptions.

Brent North Sea crude, the international benchmark, rallied to $105.48 a barrel before paring gains. The main US contract, West Texas Intermediate, reached as high as $92.84 per barrel.

The Atlantic magazine reported that the White House had asked the Pentagon to draw up options for hitting sites in Iran ahead of the congressional midterms on November 3.

With Donald Trump’s Republicans in danger of losing both houses of Congress, an escalation in the US-Iran conflict could put even more pressure on the president, with Americans already battling record-high diesel prices.

But the suggestion is that renewed US attacks could strengthen Trump’s position in seeking to bring Tehran to the negotiating table to end the war.

“The planning (for possible fresh strikes) should be seen in the context of efforts to pressure Iran, bring energy prices down, and demonstrate progress in the conflict ahead of the election,” said Arne Lohmann Rasmussen, chief analyst at the energy  consulting firm Global Risk Management.

Meanwhile Yemen’s Houthis targeted Riyadh airport with missiles on Thursday and warned staff at oil facilities in Saudi Arabia to leave to avoid being targeted as hostilities escalate.

The surge in oil prices weighed on stock markets, with Wall Street’s main indices moving lower at the opening bell.

In Europe, both Frankfurt and Paris were lower but London added 0.2 percent as the higher oil price benefited energy majors. Shares in BP rose 3.3 percent and Shell 3.2 percent in afternoon trading.

Asia’s leading stock markets tracked losses Wednesday on Wall Street, where technology firms pulled back from recent gains.

Shares in Samsung slid as the South Korean titan forecast a huge increase in quarterly profit that nonetheless failed to meet market expectations.

On Wall Street, shares in SpaceX slid 0.9 percent as trading got under way in New York, following a Financial Times report that Elon Musk’s firm is aiming to raise $40 billion in bank loans and debt to further its purchases of AI chips from Nvidia.

The massive fundraising, coming just four months after SpaceX raised $86 billion in the world’s biggest IPO, underscored the voracious demand among tech firms for chips to roll out their ambitions surrounding artificial intelligence.

On currency markets, the euro remains near lows last seen in June 2025 on worries about France’s high debt levels, which have spooked bond investors.

Key figures at around 1330 GMT

Brent North Sea Crude: UP 3.8 percent at $104.04 per barrel

West Texas Intermediate: UP 3.8 percent at $91.59 per barrel

New York – Dow: DOWN 0.4 percent at 51,003.25 points

New York – S&P 500: DOWN 0.4 percent at 7,774.82

New York – Nasdaq Composite: DOWN 0.5 percent at 27,410.88

London – FTSE 100: UP 0.2 percent at 10,480.74

Paris – CAC 40: DOWN 0.2 percent at 7,756.92

Frankfurt – DAX: DOWN 0.6 percent at 24,960.41

Tokyo – Nikkei 225: DOWN 1.4 percent at 69,042.11 (close)

Hong Kong – Hang Seng Index: DOWN 1.4 percent at 23,785.79 (close)

Shanghai – Composite: DOWN 0.8 percent at 3,811.90 (close)

Euro/dollar: DOWN at $1.1193 from $1.1194 on Wednesday

Pound/dollar: UP at $1.3212 from $1.3210

Dollar/yen: UP at 158.17 yen from 158.07 yen

Euro/pound: DOWN at 84.73 pence from 84.74 pence

AFP