The price of oil soars, sharp declines in contracts on Wall Street and in Europe

15:10

Wall Street futures signal sharp declines at the opening of trading. The Nasdaq contracts fall by about 1.8%, and the Dow Jones and S&P 500 fall by about 1.4%.

The screens are also red in Europe: the DAX index falls by about 3.3%, the FTSE loses about 2.5% and the KAC weakens by about 2.7%. The Stoxx 600 is also down 2.7%.

The jump in the price of oil has calmed down a bit. At this time, Brent oil jumps by 6.5% and trades around $83. WTI oil rises by 6.4% to a price of about 76 dollars per barrel.

After a 32% drop in the stock Pinterest Since the beginning of the year, the stock has been rising in pre-trade in New York. The company reported a $1 billion investment from the Elliott Fund – which is known as an activist fund in general and is already a shareholder in the Internet company (according to Reuters, it previously owned 4.8% of the shares). According to the agreement, Elliott will purchase the company’s convertible bonds at a conversion price of $22.72, which reflects a 30% premium over the last lock-in price. Part of the amount will be used by the company to buy back shares. Mark Steinberg, partner at Elliott and a director at Pinterest, said the fund is happy to increase its investment in a company where it recognizes an opportunity.

14:10

The sharp declines in Europe continue. The DAX index falls by about 3.7%, the FTSE loses its value by about 2.7% and the KAC weakens by about 3%.

Wall Street contracts are also red. Dow futures are down 1.6%, S&P 500 futures are down a similar amount, Nasdaq futures are down almost 2.2%.

13:38

The shock in the energy market escalates: the price of a barrel of Brent oil climbs above $85, for the first time since July 2024. In addition, gas prices in Europe are at a three-year high.

The concern is well felt in the markets. Contracts on Wall Street are red and point to declines of nearly 2.5% in the Nasdaq and 2% in the S&P 500. Europe is also experiencing particularly sharp declines, with the Eurostox 50 index losing almost 4% and completing the sharpest two-day decline since April, when Trump first presented the tariff plan.

In the shadow of the upheaval, the US dollar strengthens by about a percent against the basket of currencies. It is also strengthening against the shekel today at a similar rate, and its rate stands at 3.1 shekels.

12:25

The sharp declines in Europe continue. The DAX index falls by about 3.7%, the FTSE loses its value by about 2.8% and the KAC weakens by about 2.9%.

At the same time, the dollar index (DXY), which measures its strength against a basket of selected currencies around the world, jumps close to 1%.

11:40

Trade in Europe continues to be conducted with sharp declines. The Frankfurt Stock Exchange falls by about 3.2%, the London Stock Exchange loses its value by about 1.8% and the Paris Stock Exchange weakens by about 2.4%.

Against the background of the declines in the futures contracts on Wall Street, the dollar is now strengthening against the shekel by about 0.9% to the level of NIS 3.10.

Oil prices are now jumping by about 5%. The price of a barrel of American oil is about 75 dollars, while the price of a barrel of Brent oil is about 81.7 dollars.

Bitcoin is erasing most of its gains from yesterday and is now trading around $66,000.

US government bond yields continue to climb as investors examine the effects of the war against Iran. The ten-year yield increases by approximately 4.5 basis points to a level of 4.09%, while the two-year yield increases by approximately 5.5 basis points to a level of approximately 3.54%.

10:40

The declines in Europe are intensifying. The DAX index is now falling by about 2.7%, the FTSE is losing its value by about 1.8% and the KAC has weakened by about 2%. The futures on Wall Street are also now trading in sharp declines: the Nasdaq is down about 1.9%, while the Dow Jones and the S&P 500 are down about 1.5%.

The European Stoxx 600 index falls by about 2%, with the declines being horizontal and cross-sector. CNBC reports that the declines are led by the banking sector, which falls by about 2.7%, the insurance sector, which loses about 3.3%, and the infrastructure sector, which falls by about 2.4%. Even the defense and space sector, which usually outperforms in times of war, is down by about 1%.

At the same time, oil prices continue to soar and are now up about 4%. The price of a barrel of American oil stands at about 74 dollars, while the price of a barrel of Brent oil is now approaching the level of 81 dollars.

10:00

Against the backdrop of geopolitical developments and the blockade of the Straits of Hormuz, European stock markets also open the day with sharp declines. The DAX index falls by about 2%, the FTSE loses its value by about 1% and the KAC weakens by about 1.2%.

The stock market in South Korea fell by about 7.2% and concluded its weakest day in 19 months. The declines were led by chip stocks Samsung Electronics and SK Hynix, with declines of over 6%, although defense stocks soared, sometimes by double-digit rates.

8:35

Trade in Asia continues to be conducted with sharp declines. The Nikkei index fell by about 3.1%, the Hang Seng dropped by about 1%, the Shanghai index lost its value by about 1.4% and the Kospi index plunged by about 7.2%.

Oil prices are now rising at a rate of up to 3%. The price of a barrel of American oil is about $72.8, while the price of a barrel of Brent oil is about $80. Brent oil is at its highest level since January 2025 and Brent oil is at its highest level since June 2025.

7:00

Asia

Asian stock markets are trading in a negative trend this morning, with sharp declines recorded in Tokyo and Seoul. The Kospi index falls by about 6.4%, after the stock market in South Korea returned from a holiday, the Nikkei falls by about 2.9%, the Hang Seng loses its value by about 0.5% and the Shanghai index falls by about 0.1%.

The declines in South Korea come after a particularly impressive streak of gains in the country’s stock market, which has risen by about 40% since the beginning of this year, and only last week crossed the 6,000 points mark for the first time. The declines were led by chip stocks Samsung Electronics and SK Hynix, with declines of over 6%, although defense stocks soared, sometimes by double-digit rates.

Oil prices continue to climb this morning, after they jumped by more than 7% on the last trading day, among other things, against the background of Iran’s announcement about blocking the Straits of Hormuz. The price of a barrel of US-type oil is now about 72.7 dollars, while the price of Brent oil is just below the 80-dollar mark per barrel.

In recent days, analysts have presented a number of predictions in this regard: Saul Kebonik, head of the energy research department at MST Marquee, told CNBC that in the extreme case of the Hormuz transit disruption “it is an event that will be three times more serious than the Arab boycott and the Iranian revolution in the 1970s. It may send oil prices soaring to triple digits – over one hundred dollars per barrel – and return natural gas prices to the peak recorded during the invasion Russian to Ukraine”.

Alex Zbzinski of Meitav told Globes at the beginning of the week that “the big question is how long it will last. If they close the straits completely, it’s obviously big. But if it’s only a few days, it’s less dramatic. And of course, everything depends on the scenario that the markets play out.”

The price of gold also continues its upward streak, while investors are looking to increase their holdings in “safe haven” assets. The price of the precious metal increases by about 0.8% to a price of about $5,360 per ounce.

After its recovery yesterday, the price of Bitcoin is trading around $68,000 this morning.

Wall Street

The futures contracts on Wall Street are trading down up to 1% this morning.

Yesterday, the stock market in New York surprised positively and reacted to the military operation against Iran less sharply than one might have expected. Although the leading indexes opened the day with rather strong declines of over 1%, the Nasdaq climbed by about 0.3%, the S&P 500 closed stable and the Dow Jones fell by only about 0.2%. At the same time, the dollar strengthened around the world, Bitcoin recovered and approached the $70,000 level, the price of gold climbed and government bond yields jumped sharply (see extension below).

The war against Iran occupies Wall Street at a sensitive point. Recall that in the US, the operation is the largest American military operation since the invasion of Iraq in 2003. The increase in geopolitical uncertainty joins a number of concerns weighing on the markets recently, among them: damage by AI to the business models of companies, valuations stretched to the limit in the stock market, “sticky” inflation that keeps away from lowering interest rates by the Federal Reserve (and may worsen following a jump in oil prices), as well as the burgeoning government debt.

Shares of energy companies like misfortune andExxon Mobile They recorded increases yesterday, against the background of the rise in oil prices in the world, alongside defense stocks such as Northrop Grumman , Lockheed Martin and-RTX. Also a share Elbit Systems Crossed the $800 per share mark for the first time and climbed to a new all-time high.

Key stocks in the fields of chips and AI recovered, among them Nvidia , Microsoft , Palantir , Meta andoracle . on the other hand, Amazon , Alphabetical (Google) , AMD , Broadcom and-TSMC traded in declines. The software sector also recovered, after the heavy pressures it suffered recently due to the AI ​​shocks in the markets: the iShares Expanded Tech-Software Sector hedge fund rose by about 1.5%.

Palantir was one of the strongest performing stocks in the S&P 500 yesterday. CNBC reported that revenues from the US accounted for approximately 41% of the company’s sales in the fourth quarter, and that these are expected to grow following the increase in America’s defense spending.

stock Berkshire Hathaway Warren Buffett’s holding company, turned negative and fell nearly 5%, after the financial results published by the company on Saturday. The company’s operating profit was cut by almost 30% in the last quarter of the year, which was also Buffett’s last quarter as CEO, who held the position for 60 years. The operating profit was $10.2 billion in the quarter, compared to $14.6 billion in the corresponding quarter.

Towards the end of the trading day, the reports about the blockade of the Straits of Hormuz by Iran weighed a little on the leading indices.

Bloomberg reported yesterday that strategists of the investment bank Morgan Stanley believe that the outbreak of the conflict in the Middle East is not expected to change their bullish position regarding the American stock market, except in the case of a sharp and continuous jump in oil prices. “Unless oil prices surge historically significantly and remain high, recent events are unlikely to change our bullish stance on US equities over the next 6 to 12 months,” the team led by Mike Wilson wrote in a note to clients..

Strategists of the investment bank J. times. Morgan, led by Mislav Matjeka, noted that in their view, the current geopolitical escalation is expected to ultimately represent a buying opportunity in the stock markets, as market fundamentals remain positive.

On the other hand, Lori Kalvesina m-RBC Capital Markets, She told Bloomberg that investors should be wary of paying too much attention to studies that suggest buying stocks always after geopolitical conflicts. She warned that the evidence of recovery in markets does not always reflect the risks associated with wider wars..

The CEO of the J.P. Morgan investment bank, Jamie Dimon, said yesterday that he sees a significant chance that the conflict in the Middle East may eventually lead to sustainable peace in the region, adding that the markets have so far reacted moderately.

Referring to the military action against Iran, Damon said in an interview with CNBC that “there is hope that this may lead to a long and just peace in the Middle East. I think the chances of that are higher. And of course, the sooner it happens, the better. And you can see what happens in the markets – it is not dramatic. The economy is not often affected by such an event, unless it is prolonged.”

Sharp movement was also felt in the American debt market, where there was a sharp drop in government bond prices and an increase in yields, even though the bonds are often used as a “safe haven” asset. The ten-year yield increased by approximately 9 basis points to a level of approximately 4.05%, while the two-year yield increased by approximately 10 basis points to a level of approximately 3.48%. Apparently, the decrease is due to the fact that investors see the security developments as those that distance further interest rate cuts by the Federal Reserve in the near term.