Stock Markets Await Clarity on Hormuz, Oil Rises The European and Asian stock markets remained cautious on August 10, with investors closely watching developments surrounding the Strait of Hormuz, where ongoing negotiations between Iran and Oman have yet to yield positive results. The oil price climbed back toward $80 per barrel, reflecting continued uncertainty over the strategic waterway’s status. In Milan, the FTSE MIB index edged up by 0.25 percent to 53,851 points, while the Italian government bond yield rose slightly, widening the gap with German counterparts. Gas prices surged on the TTF market in Amsterdam, surpassing €59 per megawatt-hour. Futures contracts for September delivery gained 6.53 percent, reaching €59.14 per MWh. This increase was driven by the blockage of snow-covered routes through the Strait of Hormuz and maintenance activities at the Dvalin field in Norway. These operations, combined with extended maintenance work at the Gullfaks platform and other infrastructure projects, led to daily reductions in gas flows of at least five million cubic meters. The last time gas prices reached this level was on July 29, marking a notable shift in energy markets. Italian shares saw mixed performance, with Prysmian and ST leading gains of 2.98 percent and 2.15 percent respectively, both tied to growth prospects in the data center sector. Conversely, Nexi fell by 1.1 percent, Terna dropped 0.75 percent, and Poste declined 0.7 percent. In the banking sector, Banco BPM advanced 0.62 percent, followed by MPS, UniCredit, and Intesa Sanpaolo, while BPER and Mediobanca lagged behind. Positive momentum also extended to luxury brands such as Moncler, which rose 0.75 percent, and Eni, boosted by rising oil and gas prices. European equity indices closed above the parity level, influenced by the situation around Hormuz. French and Spanish markets showed modest gains, while London lagged behind. U.S. futures appeared mixed ahead of inflation data expected later in the week. The oil price rose slightly, hitting $78.94 per barrel, while natural gas surged 5.15 percent to €58.40 per MWh. Gold also increased by 0.52 percent to $4,338 per ounce, although the dollar remained stable against the euro at nearly 1.16. The British pound strengthened to 1.17 euros and 1.35 dollars. Meanwhile, tensions escalated in the Red Sea, where Houthi rebels launched attacks on commercial vessels. A cargo ship flagged under Liberia, named Tihamah, was struck by three ballistic missiles while passing through the Bab el-Mandeb Strait, resulting in six fatalities and several injuries. The attack was attributed to the Houthi rebels, who are aligned with Iran. The vessel, carrying food supplies, caught fire and required evacuation efforts by Yemeni forces. The Houthi group did not claim responsibility for the attack, though they had previously warned of targeting Saudi-aligned ships navigating the strait. In parallel, the U.S. military intercepted a Panamanian-flagged vessel attempting to bypass American sanctions against Iranian ports. An American helicopter fired upon the ship’s rudder after its crew ignored warnings. No casualties were reported. The incident highlights the ongoing geopolitical tensions affecting global trade routes and energy markets. Adnoc Gas, controlled by Abu Dhabi National Oil Company, is exploring alternatives to avoid using the Strait of Hormuz for LNG exports. Director Financial Peter van Driel stated that while the company is considering structural investments worth $8.2 billion in gas infrastructure, no final decisions have been made yet. He noted growing demand for gas, particularly in Asia, and emphasized the need for long-term infrastructure development to meet increasing consumption.
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