How Middle East conflict impacts global markets?

Global stock markets have declined as oil prices rise due to the conflict in the Middle East, according to Reuters.

European and Asian stocks were broadly lower on Thursday, with the eurozone index down 0.5% and MSCI’s global index down 0.2%. Asia-Pacific shares outside Japan lost 1%.

Brent and WTI crude futures rose more than $1 to $75.27 and $71.52, respectively, on concerns that the conflict could disrupt oil supplies from a key export region.

“Oil has had a good week. But in context, you’re looking at low 70s versus summer levels in the 80s. So I don’t think there’s a signal from the market to say, get ready for a major escalation… But it’s a fluid situation,” said Eren Osman, managing director of wealth management at Arbuthnot Latham.

On the currency market, the euro was trading at $1.10415, while the U.S. dollar index rose 0.2 percent to 101.87. Sterling fell 1.1 percent to $1.3116 after the Bank of England governor said he could cut rates more aggressively.