Key TakeawaysOil prices on Friday spiked to highest level since the onset of the Iran war.European stocks and US futures dipped lower, headed for their worst week of the year\u201cInvestors are scrambling to effectively price in the risk \u2026 but conditions are changing by the day,\u201d Morningstar European markets strategist Michael Field says.<\/p>\n
The Morningstar Europe Index<\/a> opened broadly neutral on Friday, remaining on course for a weekly loss of more than 4%, its worst week since the trade war-induced selloff in April of last year.<\/p>\n \u201cInvestors are scrambling to effectively price in the risk of the current conflict on markets, but conditions are changing by the day,\u201d Morningstar European markets strategist Michael Field says.<\/p>\n Oil prices continued their march higher Friday following sharp fluctuations through the course of the week as investors monitored the closure of critical energy gateway, the Strait of Hormuz.<\/p>\n Brent crude oil was up 1.5% Friday at USD 87, its highest level since July 2024. WTI crude was up 4.5% at USD 85.<\/p>\n Markets whipsawed this week as investors digested the escalating US-Israeli war with Iran, which broke out over the weekend and quickly escalated into a regional conflict, choking off energy exports and disrupting maritime and air traffic.<\/p>\n US stock futures pointed to a similarly muted open, with S&P 500 contracts down 0.3% and those on the more technology-oriented Nasdaq 100 down 0.4%. So far this week, US equities have fared much better than Asian and European peers: The Morningstar US Market Index<\/a> declined 0.8% through Thursday\u2019s close in dollar terms.<\/p>\n One Week In, Asian Stocks Have Been Hit the Worst<\/p>\n With East Asian economies hevaily reliant on imports of energy products from the Middle East and on the back of a rally in the prior year, the region\u2019s equities have suffered the worst declines among major regions.<\/p>\n