The financial markets are surprisingly calm this morning, as conflict erupts again in the Middle East.
European stock markets are mostly higher this morning, while the oil price is now slipping back.
Today, the US has launched a second round of airstrikes on Iran, prompting Tehran to respond by targeting Bahrain, Kuwait and Jordan.
Brent crude oil did jump overnight to as high as $95.50 a barrel, but it’s now slipped back to $92.25, down almost 1% today.
And Britain’s FTSE 100 share index is now up 0.55%, or 56 points, at 10,311 points.
AJ Bell investment director Russ Mould, explains:
“As has often been the case during the Iran conflict, the UK’s flagship index has found support from its collection of energy companies and more traditionally defensive names. Miners and other China-linked stocks were lifted by data suggesting the country is investing heavily in AI and consuming raw materials at a healthy rate.
“Selling in AI-related stocks, of which London has very few, put shares on Wall Street under pressure yesterday and that’s extended to Asia today.
“Oil prices remained steady despite the apparent unravelling of the US-Iran ceasefire. That is partly helped by sluggish demand from China with imports falling as the country relies on its own stockpiles and expands its use of alternative energy.
