Portugal Colonial - Oil slumps after hitting peak, stocks rise

Meanwhile, US and European stock markets mostly rose on positive earnings reports from some tech firms.

International benchmark Brent crude soared more than seven percent to $126 a barrel but then eased and turned lower to trade around $110. That's still almost double its price before the United States and Israel attacked Iran.

Markets were jolted after President Donald Trump warned the US blockade of Iranian ports could last months, and by a report that he would be briefed on potential fresh military strikes.

"Fears about escalation in the conflict between the US and Iran fueled the initial move higher before the market calmed down," said Kathleen Brooks, research director at XTB.

The expiry of monthly contracts also added to the volatile moves.

All the main European stock markets closed higher, taking their cue from largely positive earnings reports from US tech companies.

Shares in Google parent company Alphabet rose more than five percent as investors lauded the company's success in making the pivot to artificial intelligence and solid revenue across its major divisions.

But shares in Meta slumped more than nine percent amid concerns about its huge AI spending.

Overall, "the earnings results have been supportive, and understandably so given that there has been a large number of very large beats" of earnings forecasts, said Briefing.com analyst Patrick O'Hare.

In New York, the Dow and the S&P were higher in midday trading while the Nasdaq was little changed.

Shares in Google parent company Alphabet rose more than six percent as investors lauded the company's success in making the pivot to artificial intelligence and solid revenue across its major divisions.

But shares in Meta slumped more than nine percent amid concerns about its huge AI spending.

Apple reports later today, and its shares were up almost one percent.

Central banks remained a focus on Thursday, a day after the Federal Reserve kept interest rates unchanged as the United States faces elevated inflation triggered by the war.

The European Central Bank and Bank of England also both held rates steady.

But the ECB warned risks to the eurozone growth and inflation outlook have "intensified" because of the war in the Middle East and its impact on global energy supplies.

Meanwhile the Bank of England cut its forecast for UK growth.

Data released Thursday showed that growth in the eurozone economy slid to 0.1 percent in the first quarter, whereas in the United States, it rebounded by a less-than-expected annual rate of two percent as consumer spending cooled and effects of the Middle East war began to ripple through the global economy.

The yen shot more than two percent higher against the dollar after Japan's finance minister hinted strongly that Tokyo was close to intervening in the market to support the currency, after it slipped to its lowest level against the dollar since mid-2024.

- Key figures at 1530 GMT -

Brent North Sea Crude: DOWN 0.5 percent to $109.78 a barrel

West Texas Intermediate: DOWN 2.4 percent at $104.32 a barrel

New York - Dow: UP 1.5 percent at 49,585.91 points

New York - S&P 500: UP 0.5 percent at 7,167.46

New York - Nasdaq Composite: UP 0.1 percent at 24,686.83

London - FTSE 100: UP 1.6 percent at 10,378.82 (close)

Paris - CAC 40: UP 0.5 percent at 8,114.84 (close)

Frankfurt - DAX: UP 1.4 percent at 24,140.59 (close)

Tokyo - Nikkei 225: DOWN 1.1 percent at 59,292.38 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,776.53 (close)

Shanghai - Composite: UP 0.1 percent at 4,112.16 (close)

Euro/dollar: UP at $1.1727 from $1.1695 on Wednesday

Pound/dollar: UP at $1.3577 from $1.3489

Dollar/yen: DOWN at 156.67 yen from 160.23 yen

Euro/pound: DOWN at 86.41 pence from 86.71 pence

O.Gaspar--PC