Global Markets Slide as Geopolitical Tensions and Energy Threats Mount
"We are facing the biggest energy security threat in history," warned Fatih Birol, head of the International Energy Agency, at CNBC's CONVERGE LIVE.
Ceasefire & Diplomacy
President Donald Trump announced on Thursday that Israel and Lebanon have agreed to extend their ceasefire by three weeks. The truce, originally set to expire after ten days, has been granted an extension to allow for continued diplomatic efforts.
Strait of Hormuz & Oil Markets
The Strait of Hormuz remains closed. In a sharp escalation, Trump stated that he ordered the U.S. Navy to shoot and kill any vessel laying mines in the strategic waterway.
Oil prices edged higher on Friday amid the ongoing closure. International benchmark Brent crude rose 0.41% to $105.5 per barrel, while U.S. West Texas Intermediate futures traded 0.08% higher at $95.93.
Global Market Snapshot
European benchmarks were called lower on Friday, capping off a downbeat week. U.S. futures were mixed: Dow futures pointed to a lower open, while S&P and Nasdaq Composite futures traded in positive territory.
Asia-Pacific markets were mixed around lunchtime:
- Japan's Nikkei 225 rose 0.8% after core inflation accelerated for the first time in five months.
- Hong Kong's Hang Seng index slipped 0.15%.
- South Korea's Kospi traded 0.23% lower.
Ukraine & Technology
The European Union approved a massive 90 billion euro ($105 billion) loan to Ukraine, providing key financial support amid the ongoing conflict.
Chinese AI startup DeepSeek released a preview version of its open-source V4 large language model. In a notable development, the company's R1 reasoning model, released in March 2025, outperformed U.S. counterparts at a significantly lower cost.