Oil prices are holding steady: they remain above $100.

BarcelonaOil prices continued to rise Tuesday afternoon due to the Gulf War, fueled by uncertainty surrounding the conflict, the closure of the Strait of Hormuz to shipping, and Iranian attacks on energy infrastructure in the region. Brent crude, the European benchmark, rose more than 4% Tuesday morning compared to the previous day, reaching $104.23 per barrel. However, by early afternoon, the price increase had moderated to 1.30%. Similarly, West Texas Intermediate (WTI) crude, the US benchmark, was up nearly 1.5% at the same time Tuesday afternoon, reaching $93.99 per barrel, while natural gas rose 1.40% to €51.60 per megawatt.

The price of crude oil began its upward climb on February 28, when the US and Israel launched their bombing campaign against Iran. Tehran's response was to attack US bases in various Middle Eastern countries—all hydrocarbon exporters, like Iran itself—and effectively close the Strait of Hormuz, the passage between the Persian Gulf and the Indian Ocean through which more than a fifth of the petro flows. Furthermore, due to the conflict, most insurers of the ships that transport oil and gas have suspended coverage, making tanker traffic unfeasible.

In recent days, Iran and pro-Iranian militias have intensified attacks on energy infrastructure in countries such as Iraq and the United Arab Emirates, further driving up the price of a barrel of crude oil. However, Brent crude remains below $119 a barrel, the highest level reached since the outbreak of the war. Nevertheless, compared to pre-conflict prices, crude has become approximately 50% more expensive.

US President Donald Trump has called on the European Union, Great Britain, China, and other countries to create a naval force to deploy to the region to prevent Iranian attacks and keep the Strait of Hormuz open, but so far no government views the idea favorably. Furthermore, the Israeli government He begins to publicly question whether the conflict will end with the fall of the ayatollahs' regime., which was the main objective of the joint offensive with the United States.

Stock market rise

Meanwhile, European stock markets opened slightly lower on Tuesday after closing modestly higher on Monday. The Ibex-35, Spain's benchmark index, stood above 17,300 points at 4:15 PM, representing a 1.25% gain. Only Indra shares declined. Milan's performance was similar, rising 1.43%. Frankfurt and Paris also closed higher, gaining 0.93% and 0.88% respectively, while London rose 0.96%. In Asia, where trading had already closed, Tokyo fell 0.2% and Shanghai 0.8%, while Seoul and Hong Kong closed up 1.6% and 0.1% respectively. US markets were not yet open on Tuesday, but Wall Street closed Monday with gains of around 1%.

Markets are also awaiting the Federal Reserve's (Fed, the US central bank) decision on interest rates. The monetary institution begins its two-day meeting today, during which it will review the price of money, facing the usual dilemma when energy prices soar: On the one hand, rising oil prices will put upward pressure on the prices of fuel, food, and most consumer goods and services, which could prompt the Fed to raise rates. But on the other hand, rising energy costs drive up business costs and slow economic growth at a time when the bulk of US activity is concentrated in a single sector, artificial intelligence. Therefore, some members of the Fed might advocate for keeping rates unchanged or even cutting them.

The Fed will announce its decision on Wednesday, while the following day the European Central Bank will also meet to announce a new review of interest rates in the eurozone.