Portugal Colonial - Oil extends gains on US-Iran tensions, Europe stocks slide

On stock markets, a rally across Asia following gains by US tech heavyweights failed to bolster indices in Europe, where traders focussed on a string of corporate results.

The gains for oil extended a surge seen Wednesday, came after the White House warned that Iran would be "wise" to do a deal with the United States.

US President Donald Trump once again hinted at a strike on Tehran on his Truth Social site, with a US military buildup underway in the Middle East.

UN nuclear watchdog chief Rafael Grossi said there was a "step forward" in talks between Iran and the United States in Geneva but warned that "we don't have much time".

"Oil is extending its gains, with Brent crude back above $70 a barrel... as fears of a military confrontation between the US and Iran rattled energy markets," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

"Nuclear talks between the two sides appear to be going nowhere fast, and the geopolitical premium is clearly back in play," he added.

Major European indices were in the red, with shares in plane maker Airbus down six percent in Paris and Frankfurt after its annual results fell short of analysts' expectations.

Shares in French carmaker Renault fell six percent in Paris after it posted higher 2025 sales but warned of slipping profit margins from increased sales of electric and hybrid vehicles.

In London, disappointing earnings from mining giant Rio Tinto and energy group Centrica weighed on the blue-chip FTSE 100 index.

In Asia, Seoul's Kospi led gains, jumping more than three percent to a record high as it reopened after the Lunar New Year break, with chip giants Samsung and SK hynix once again the standout performers.

Tokyo also advanced while Hong Kong, Shanghai and Taipei remained closed for the Lunar New Year holiday.

Asian stocks are enjoying a strong start to the year as investors turn to the region's relatively cheaper tech plays after Wall Street's AI-fuelled surge over the past two years.

Investors also tempered expectations for more US interest rate cuts as they assessed minutes from the Federal Reserve's January meeting, which showed policymakers growing concerned about inflation.

Recent strong data on the US economy has suggested that the Fed might not need to cut rates any time soon.

But "US futures are pointing higher... suggesting investors may be ready to look past the Fed noise and push on," Britzman said.

- Key figures at around 1115 GMT -

Brent North Sea Crude: UP 1.6 percent at $71.45 per barrel

West Texas Intermediate: UP 1.7 percent at $66.17 per barrel

London - FTSE 100: DOWN 0.7 percent at 10,611.53 points

Paris - CAC 40: DOWN 0.8 percent at 8,364.66

Frankfurt - DAX: DOWN 0.7 percent at 25,091.30

Tokyo - Nikkei 225: UP 0.6 percent at 57,598.83 (close)

Hong Kong - Hang Seng Index: Closed for holiday

Shanghai - Composite: Closed for holiday

New York - Dow: UP 0.3 percent at 49,662.66 (close)

Euro/dollar: UP at $1.1785 from $1.1784

Pound/dollar: DOWN at $1.3481 from $1.3500

Euro/pound: UP at 87.41 pence from 87.29 pence

Dollar/yen: DOWN at 154.69 yen from 154.80 yen on Wednesday

H.Silva--PC