The Fort Worth Press - Stocks tumble, oil soars past $100 on Mideast war

Oil prices rocketed above $100 a barrel for the first time since Russia's invasion of Ukraine in 2022, as Iran carried out retaliatory strikes against crude-producing Gulf nations.

US President Donald Trump said at the weekend that the price spike was a "small price to pay" to eliminate Iran's nuclear threat, as the war showed no signs of easing.

Iran marked the appointment of Ayatollah Mojtaba Khamenei to replace his father as its supreme leader with a new barrage of missiles against Israel and the Gulf states at the start of the week.

International benchmark Brent and the main US oil contract WTI both rose close to 15 percent nearing midday in Europe, having spiked around 30 percent.

"The spike in the oil price is dominating global financial markets," said Kathleen Brooks, research director at trading group XTB.

Oil gains eased slightly as the Group of Seven industrialised nations prepared to discuss tapping emergency reserves to ease the supply strain.

French President Emmanuel Macron, whose country holds the rotating presidency of the G7, said that "the use of strategic reserves is an option being considered."

The discussions come as maritime traffic in the Strait of Hormuz -- through which a fifth of global crude passes -- has all but halted since the war began on February 28.

European stocks moved sharply lower nearing midday deals, and gas prices on the continent remained elevated after soaring as much as 30 percent at the open.

"The rise in petrol costs is acting as a major drag on equity prices and if oil prices continue to move higher this week, then the pumps will move with it," Brooks said.

"The cost of living crisis is back, and it makes global rate cuts unlikely in the coming months," she added.

The Paris stock market shed around two percent, while Frankfurt was down 1.6 percent and London lost 1.2 percent, with energy and defence stocks among the few gainers.

The prospect of interest rates being kept elevated, or even raised to combat inflation, pushed government bond yields higher.

In Asia, Seoul, one of region's best performers this year thanks to a tech rally, closed down six percent, while Tokyo shed more than five percent and Taipei fell more than four percent.

Hong Kong and Shanghai also closed sharply lower.

Michael O'Rourke, chief market strategist at JonesTrading, warned that the pain for investors could last for some time.

"The worst is yet to come in the stock market reaction," he said. "I would expect more of a risk-off mood until we get some tangible positive news."

- Key figures at around 1100 GMT -

Brent North Sea Crude: UP 14.6 percent at $106.24 per barrel

West Texas Intermediate: UP 13.4 percent at $103.41 per barrel

London - FTSE 100: DOWN 1.2 percent at 10,156.86 points

Paris - CAC 40: DOWN 2.0 percent at 7,835.69

Frankfurt - DAX: DOWN 1.6 percent at 23,220.20

Seoul - Kospi: DOWN 6.0 percent at 5,251.87 (close)

Tokyo - Nikkei 225: DOWN 5.2 percent at 52,728.72 (close)

Hong Kong - Hang Seng Index: DOWN 1.4 percent at 25,408.46 (close)

Shanghai - Composite: DOWN 0.7 percent at 4,096.60 (close)

New York - Dow: DOWN 1.3 percent at 47,501.55 (close)

Euro/dollar: DOWN at $1.1561 from $1.1604 on Friday

Pound/dollar: DOWN at $1.3344 from $1.3385

Dollar/yen: UP at 158.47 yen from 157.88 yen

Euro/pound: DOWN at 86.66 pence from 86.67 pence

T.Gilbert--TFWP