MARKET WRAPS
European stocks were on a downward trajectory and reversed earlier gains, after markets Thursday were weighed down by fears of an energy crisis provoked by the U.S.-Israeli war on Iran.
European stocks mostly rose initially as all sectors gained except for energy . The FTSE 100, the DAX and the CAC 40 were in positive territory at the opening bell. The Stoxx 600 index was up 0.7%.
Energy stocks slid, however, as oil pared some of its gains and dragged BP, Shell, Equinor and Repsol.
Oil prices had eased for a moment as Israel said it would no longer target Iranian energy infrastructure and after suggestions President Trump may relax sanctions on Iranian oil to ease supply concerns.
This brought some relief that attacks on energy infrastructure would not spiral into something worse, Deutsche Bank said. Oil prices had gone back up nearing midday.
This comes as an oil refinery in Kuwait was hit in a drone attack and as U.S. allies said they were ready to join efforts to reopen the Strait of Hormuz .
Also, U.S. Treasury Secretary Scott Bessent said the U.S. might lift sanctions on Iranian oil already at sea in the coming days.
Though some degree of calm has returned, RBC Capital Markets said it is watching for any signs the Houthis may enter the fray , imperiling the alternative Red Sea export route.
"If the Yemeni group does become an active participant, we think it would materially alter risk perceptions about the Red Sea exports."
Meanwhile, mining stocks were lifted by precious-metal prices ticking upward with Fresnillo, Hochschild Mining and Endeavour Mining among those names gaining.
At midday the FTSE 100 the DAX, the CAC 40 and the Stoxx 600 had slipped into the red.
Elsewhere, the U.K. government borrowed more in February than a year earlier and was on track to reduce its budget deficit before the U.S. attack on Iran upended the economic outlook.
U.S. Markets:
Stock futures pointed to a lower open Friday as crude oil rose despite U.S. efforts to calm investors.
Forex:
The dollar rose slightly, reversing some of its falls in the previous day. Oil prices stayed lower on Friday but large uncertainties remain surrounding how long the conflict will last and how long energy prices will stay elevated.
"The foreign exchange market will therefore have to brace for continued volatility in exchange rates as long as the conflict persists and brings new twists every day," Commerzbank said.
Bitcoin rose slightly as European equities started the day in positive territory. It remained at weaker levels after dropping on Thursday.
Bonds:
Yields on Treasurys and eurozone government bonds turned higher and markets remain volatile due to uncertainty surrounding the Middle East war and energy prices.
Yields rise as oil prices turn higher again, with Brent crude last up 1.2% at $109.99 a barrel.
"When crude rallies, sentiment more broadly sours, and government bonds sell off as markets price a higher inflation profile moving forwards," Pepperstone said.
Yields on U.K. 10-year government bonds climbed to the highest level since 2008 as the Middle East war raised concerns about a prolonged energy supply shock and the risk of high inflation.
The two-year Treasury yield is gaining appeal if the war in the Middle East ends soon, Societe Generale said.
"With an interest-rate hike unlikely in the U.S. and the potential for a quick reversal in the recent price action if the war ends, the 2-year Treasury yield at 3.80% starts to look attractive," it said, adding that a prolonged conflict and continued rise in oil prices are a risk to this view.
Energy:
Oil prices rose and the spread between the world's two benchmarks widened sharply this week, reaching its highest level in more than a decade as Middle East supply risks deepened the gap.
"The escalation of the attacks on energy assets implies significant risks for not just near-term oil exports from the region, but longer-term oil production capacity," Goldman Sachs said.
Europe's natural gas front-month contract fell in early trading after hitting its highest level since 2022 on Thursday, but prices were poised for a weekly gain of roughly 20% as Qatar reported severe damage to Ras Laffan.
"The market is starting to price in a longer supply disruption. Also, the large global LNG surplus that the market had expected through 2027 is looking much more elusive," ING said.
Metals:
New York gold futures rose 1.7% to $4,682.20 a troy ounce in early European trading, but prices were on track for a weekly fall of more than 7% after being pressured by a stronger dollar and dimming hopes for further interest-rate cuts in the near term.
"Upward momentum has faded. Some investors are selling gold to raise cash or rebalance portfolios," ING said.
Gold's recent fall looks meaningful but isn't unprecedented , J.P. Morgan Private Bank said. Spot prices rose.
"If this conflict [doesn't] lead to a sustained risk off environment coupled with additional dollar strength, investors who felt they 'missed the rally' may see this pullback as an opportunity to leg in."
EMEA HEADLINES
Unilever in Talks to Separate Food Business and Combine It With McCormick
Unilever, the maker of Dove deodorant and Hellman's mayonnaise, is in talks to separate its food business and combine it with spice maker McCormick.
Both companies confirmed the talks Friday after The Wall Street Journal reported them a day earlier.
Vincorion Shares Gain on Market Debut as Investors Eye Rising Defense Demand
Vincorion shares jumped on the group's first day of trading as investors eye a business boost for Europe's defense suppliers.
Shares in the German company, which supplies aviation and vehicle systems for the defense industry, traded at 19.59 euros in morning trading, up 15% from a listing price of 17 euros a share. The company had said it aimed to raise 345 million euros ($399.8 million) through the initial public offering at the listing price.
Novartis to Buy Breast-Cancer Drug From Synnovation for Up to $3 Billion
Novartis struck a deal valued at up to $3 billion to buy an experimental breast-cancer drug from Synnovation Therapeutics, moving to bolster its oncology pipeline with a new treatment approach.
The Swiss drugmaker has turned to dealmaking to replenish its drug pipeline as it braces for what its chief executive, Vas Narasimhan, recently called the largest patent expiry in the company's history, with key products such as heart-failure treatment Entresto, platelet booster Promacta and leukemia drug Tasigna losing exclusivity.
GLOBAL NEWS
Saudi Arabia Sees a Spike to $180 Oil if Energy Shock Persists Past April
Saudi Arabia's oil officials are working frantically to project how high oil prices might go if the Iran war and its disruption of energy supplies doesn't end soon-and they don't like what they are seeing.
The base case, several oil officials in the Gulf's biggest producer said, is that prices could soar past $180 a barrel if the disruptions persist until late April.
Markets Face a Quadruple Witching Day. What It Is and Why It Spooks Stocks.
The stock market is easily spooked these days. It's not great timing for a quadruple witching day.
Four times a year stock-index futures, stock index options, single stock options, and single stock futures all expire on the same day-it can lead to elevated volatility and trading volumes as investors close out positions.
Work From Home, Carpool and Fly Less to Combat Soaring Oil Prices, IEA Says
The International Energy Agency has advised households, businesses and governments to adopt measures such as working from home and carpooling to curb fuel demand and ease pressure from soaring oil prices.
The Paris-based organization and its member countries last week agreed to release 400 million barrels of oil from their emergency stocks, the largest reserves distribution in history.
China Targets Lawyers Defending Jailed Christian Leaders
BEIJING-Chinese authorities are ramping up pressure on lawyers defending a group of jailed Christian church leaders, whose arrests last year drew condemnation from the U.S. government, as Beijing seeks to silence religious faithful who refuse to submit to state control.
Nearly 20 people associated with Zion Church, a large, long-running Protestant congregation in the Chinese capital, were arrested in October, including founder Ezra Jin, part of one China's largest crackdowns on Christians in years.
Trump's Iran War Frays Ties With Allies as Oil Prices Surge
President Trump's war with Iran has put the U.S. on a collision course with some of its closest allies over one of the most audacious foreign policy moves of his presidency.
Longstanding allies weren't informed of the battle plans until hours before the first attack was launched almost three weeks ago, and they have since been publicly criticized by the president for not providing enough military help. Some offers have been rebuffed, and friendly capitals have been left guessing over the White House's plans to end the war and soothe energy markets.
Ukraine Suffers Money Setback After Hungary Blocks $100 Billion From Europe
BRUSSELS-Ukraine's ability to continue fighting Russia's invasion was thrown into question on Thursday after Hungarian Prime Minister Viktor Orbán refused to lift his veto on a loan of more than $100 billion, threatening Kyiv's finances as global attention shifts to the Middle East and oil prices surge.
European Union officials remain hopeful they can resolve the impasse in the coming days. But Ukraine needs the money within weeks to keep its government functioning, so EU officials may be forced to resort to other short-term options for funding Ukraine if no resolution emerges.
Write to pierre.bertrand@wsj.com
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March 20, 2026 07:12 ET (11:12 GMT)
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