Stocks, oil climb as war stirs volatility

Global stock markets rose and oil prices crept up further yesterday as the Middle East war entered its sixth day, with energy supplies constrained and investors assessing levels of volatility.

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The price per litre of unleaded petrol and diesel fuels are pictured outside a Shell petrol station, in London

European markets climbed for a second straight day following gains in Asia, where stocks rebounded from three days of declines.

Joshua Mahony, chief market analyst at Scope Markets, said there had been gains across all categories, suggesting that investors were “dip buying”, where they purchase stocks after a slump in the hope they will recover value.

Global markets have been thrown into turmoil this week after the United States and Israel began strikes against Iran on Saturday, killing its supreme leader and sparking a wave of retaliatory attacks across the Gulf.

Tehran also effectively shut down the Strait of Hormuz, through which a fifth of the world’s crude and considerable supplies of liquefied natural gas travel, sending prices soaring.