Oil and gas prices remain volatile in rollercoaster week amid Iran war

Oil and gas prices remained volatile on Friday as stock markets also suffered ongoing turbulent trading due to the escalating Iran conflict.

UK natural gas prices eased back a little in early trading on Friday, having jumped more than a fifth on Thursday to its highest level in three years at one stage.

Brent crude was extending gains yet again, up another 2% to nearly 111 dollars a barrel, quickly resuming price rises after initially retreating earlier in the day.

Oil had risen as high as 119 dollars a barrel on Thursday.

Financial markets also quickly erased early session gains, with the FTSE 100 Index in London see-sawing and indices lower across Europe.

The UK’s blue chip share index had opened higher, but later fell as much as 0.6%, before settling to stand largely flat, down 0.1% at 10,053.6.

There were falls across Europe, with the Cac 40 in France and Germany’s Dax 0.4% lower.

Thursday saw steep falls for stocks worldwide after the Israel strikes targeting energy infrastructure sparked Iranian attacks on Qatar, with Shell’s important gas-to-liquid facility damaged in the assault.

Sentiment was initially boosted following a statement late on Thursday by Israeli’s prime minister Benjamin Netanyahu that he would hold off on any further attacks on Iran’s gas field at the request of US president Donald Trump after the Iranian retaliation sent oil prices skyrocketing.

But experts said trading would remain volatile as the conflict shows no sign of a resolution three weeks since the US and Israel’s attacks on Iran began.

Swissquote senior analyst Ipek Ozkardeskaya said: “Despite a relatively calmer morning session, the uncertainty and the volatility will remain on the menu.”

Saxo’s experts added: “Despite the calmer price action, concerns remain that the impact of the conflict will be felt long after hostilities eventually subside.

“The disruption has already led to an unprecedented supply shock, with producers across the Gulf collectively shutting in around 10 million barrels per day of output.

“This has intensified global inflation pressures while simultaneously raising concerns about slowing economic growth.”