Portugal Colonial - Oil climbs, stocks fall as markets see no end to war

Trump has extended a deadline for Tehran to open the Strait of Hormuz or face the destruction of its energy assets, pushing it from Friday to April 6.

But with Iran maintaining a hold on the Straits, Trump's announcement largely failed to lift the mood for markets. European stocks were down in mid-afternoon trading, and New York's three main indexes all opened about one percent lower. Oil prices were up more than two percent.

Friday's state of mind contrasted with the sharp plunge in oil prices and gains for stocks after Trump first delayed the deadline earlier this week.

"Traders are now discounting the daily torrent of posts and incoherent press conferences from the White House, as the war rages on," said Kathleen Brooks, research director at XTB. "Investors are facing the facts: the Strait of Hormuz is effectively closed and it does not appear that there is a real end in sight to the war."

Trump has insisted Iran wanted "to make a deal" to end the war engulfing the region, but the Iranian side has indicated no let-up in reprisal attacks against Israel and targets across the Gulf.

Kuwait said Friday its main commercial port was damaged in a drone attack.

Iran's Tasnim news agency said the country has responded to Washington's 15-point plan to end the war and was awaiting a reply.

The report, citing an unnamed source, said officials had called for an end to US-Israeli attacks on Iran and Tehran-backed groups elsewhere in the region.

It called also for war reparations and for Iran's sovereignty over the Strait of Hormuz to be respected.

"The simple fact is that sentiment is likely to stay negative for as long as the Strait of Hormuz remains unsafe for shipping and controlled by Iran," said David Morrison, analyst at Trade Nation.

Adding to market woes, China on Friday opened an investigation into US trade practices in response to Washington's probes this month of Beijing's exports.

Tokyo's stock market closed lower, while Hong Kong and Shanghai edged up.

The market's doubts about chances of a peace deal came as governments around the world looked to shore up their economies against surging energy costs, which are adding to inflationary pressures.

Vietnam temporarily waived an environmental levy on fuel to cut petrol prices by more than a quarter, India said it had lowered fuel taxes and Japan looks to temporarily lift restrictions on coal-fired power plants in a bid to ease an energy crunch.

Spain, Poland and South Korea earlier this week announced support plans that included fuel tax cuts.

- Key figures at around 1335 GMT -

Brent North Sea Crude: UP 2.3 percent at $104.17 a barrel

West Texas Intermediate: UP 2.6 percent at $97.08 a barrel

New York - Dow: DOWN 0.9 percent at 45,541.11 points

New York - S&P 500: DOWN 0.8 percent at 6,4225.28

New York - Nasdaq Composite: DOWN 1.0 percent at 21,199.00

London - FTSE 100: DOWN 0.4 percent at 9,930.08 points

Paris - CAC 40: DOWN 0.7 percent at 7,709.11

Frankfurt - DAX: DOWN 1.5 percent at 22,292.39

Tokyo - Nikkei 225: DOWN 0.4 percent at 53,373.07 (close)

Hong Kong - Hang Seng Index: UP 0.4 percent at 24,951.88 (close)

Shanghai - Composite: UP 0.6 percent at 3,913.72 (close)

Euro/dollar: UP at $1.1525 from $1.1523 on Thursday

Pound/dollar: DOWN at $1.3289 from $1.3313

Dollar/yen: DOWN at 159.66 yen from 159.83 yen

Euro/pound: DOWN at 86.73 pence from 86.55 pence

A.Motta--PC