Stocks Fall As Iran War Keeps Oil Just Above $100, Upends Rate Outlook

Oil prices moderated somewhat after the U.S. issued a 30-day license for countries to buy sanctioned Russian oil and petroleum products that were stranded at sea.

SINGAPORE/LONDON, March 13 (Reuters) - European stocks fell on Friday as investors grappled with uncertainty over the duration of war inIran, which has disrupted global energy supplies and spurred inflation fears that have upended the outlook for interest rates.

The price of oil — which has surged 40% since the onset of the war — remained just above $100 per barrel at its highest level since mid-2022. Prices moderated somewhat on Friday after the U.S. issued a 30-day license for countries to buy sanctioned Russian oil and petroleum products that were stranded at sea.

Europe’s STOXX 600 fell 0.6% in early trading, putting the index on track for a 6.1% fall in March so far — its biggest two-week decline in a year.

U.S. futures were subdued, with S&P 500 e-minis off 0.1% following steep declines on Thursday that saw the S&P 500 close 1.5% lower.

Meanwhile the U.S. dollar has become the safe-haven of choice during the tumult, putting most other currencies under pressure. The dollar was set for a second consecutive week of gains and is up 2.5% since the war broke out at the end of February.