Oil\u00a0prices surged about 20% on Monday as the U.S.-Israeli war with\u00a0Iran continued, raising fears of prolonged disruptions to energy supplies.<\/p>\n
Anton Petrus | Moment | Getty Images<\/p>\n
LONDON \u2014 European stocks closed lower on Friday, as investors continued to weigh the ongoing conflict in the Middle East and its lasting impact on growth.<\/p>\n
The pan-European Stoxx 600<\/a> provisionally closed 0.5% lower, with most major regional bourses in negative territory, while sectors were mixed. <\/p>\n Oil and gas, insurance, and utilities all led gains, while industrials and miners lagged the broader index.<\/p>\n Meanwhile, sterling fell against the dollar and euro on Friday, after preliminary data showed the U.K. economy stalled in January.<\/a><\/p>\n Sterling was trading 0.8% lower at $1.323, while the euro also weakened against the greenback by 0.6% to $1.144.<\/p>\n Deutsche Bank<\/a> shed 0.9% after the lender revealed a $30 billion exposure to the private credit market on Thursday. Deutsche shares bucked the trend of the wider banking sector, which is seeking to quell the fallout of the Middle East conflict. The Stoxx 600 Banks index was last seen trading down 1.12%.<\/p>\n Meanwhile, BE Semiconductor<\/a> shares rose 6.6% on rumors of takeover interest. BESI did not immediately respond to a request for comment from CNBC.<\/p>\n Energy prices remain in sharp focus following a choppy week for global markets. The U.S. on Friday issued a temporary 30-day waiver on sanctioned Russian oil in transit at sea, in a bid to ease concerns over a growing supply squeeze and surging prices.<\/p>\n Brent crude<\/a> prices remain above the $100 level, despite the International Energy Agency announcing on Wednesday a record 400 million barrel release from its emergency reserves. The international benchmark was last up 1% at $101.54.<\/p>\n West Texas Intermediate<\/a>, the U.S. benchmark, was also up 1.1% at $96.82, as the U.S. Energy Department said it would release 172 million barrels\u00a0of\u00a0oil\u00a0from its Strategic Petroleum Reserve.<\/p>\n Following a spate of attacks on vessels in the area this week, U.S. Treasury Secretary Scott Bessent said escorts for vessels through the vital Strait of Hormuz chokepoint would begin “as soon as militarily possible.” Chris Wright, U.S. energy secretary, said escorts would happen “relatively soon” but it “can’t happen now.”<\/p>\n Iran’s new Supreme Leader Mojtaba Khamenei said late Thursday that the country would continue to block the shipping channel, which has been effectively shut off since the outbreak of hostilities, causing the rapid spike in oil prices.<\/p>\n Rising costs continue to weigh on markets, with Asian stocks under pressure<\/a> during Friday’s session, with Japan’s Nikkei 225<\/a> and South Korea’s Kospi<\/a> both down.<\/p>\n The S&P 500 index fell 0.3%, while the\u00a0Nasdaq Composite<\/a>\u00a0declined 0.6%. The\u00a0Dow Jones Industrial Average<\/a>\u00a0was last seen trading flat. U.S. markets are set to finish lower week-to-date. <\/p>\n