MARKET REPORT: Oil falls as fears of wider Middle East war ease

Oil stocks took a hit when the price of crude oil fell nearly $5 a barrel on hopes of avoiding a full-blown war in the Middle East.

Brent crude fell as much as 6 percent, from $75.89 to $71.29 (its lowest level since mid-September), before recouping some of its losses.

The decline came amid signs that the Middle East may be retreating from a dramatic escalation of the conflict.

Although Israel launched retaliatory airstrikes against Iran over the weekend, it avoided key oil and nuclear facilities and did not disrupt energy supplies.

Iran’s leaders said they were considering their response and added that the attack caused only “limited damage”, in what was seen as a sign that Tehran is reluctant to escalate the conflict.

The drop in oil prices saw BP fall 1.4 per cent, or 5.8 pence, to 399.1 pence, and Shell 1.4 per cent, or 34.5 pence, to 2,516 pence.

But airlines were in demand as a drop in oil prices raised hopes of lower fuel costs.

British Airways owner IAG gained 1.8 per cent, or 3.8 pence, to 215.3 pence, Easyjet added 2.7 per cent, or 13.8 pence, to 520.4 pence, and Wizz Air rose 4.6 per cent, or 61 pence, to 1,387 pence.

Cruise operator Carnival rose 4.2 per cent, or 61.5 pence, to 1,518 pence.

Ahead of a week busy with corporate news, economic data and of course the budget, London’s main indices managed to rise.

The FTSE100 index closed up 0.5 per cent, or 36.78 points, at 8,285.62, and the FTSE250 index rose 0.1 per cent, or 15.19 points, to 20,835.1.

Certainly looking “better on rail” is online ticketing company Trainline, which raised its full-year forecast for the second time in two months, reflecting a buoyant first half and a good start to the second.

The firm said it expects net ticket sales to rise between 12% and 14% in the year to February 28, 2025, against a previous growth target of between 8% and 12%, while Revenue growth is expected to be 11%-13%, down from 7%-11%. previously.

In the six months to August 31, the company reported a 14 per cent year-on-year rise in net ticket sales to £3bn, and a 17 per cent rise in revenue to £229m.

Trainline shares rose 9.2 per cent, or 31p, to 368p, topping the FTSE250 gains chart.

Back in commodities markets, precious metals miners tracked lower gold prices against a stronger US dollar, with Endeavor Mining down 1.5 per cent, or 28 pence, at 1,818 pence and Fresnillo losing a 0.7 per cent, or 5.5p, to 753p.

Elsewhere, BT Group fell 1.1 per cent, or 1.6 pence, to 142.8 pence, amid reports the telco is looking at the possible sale of its network services supply unit Radianz.

On the second line, Computacenter fell 0.9%, or 22p, to 2,312p, after lowering its full-year profit forecast following a softer-than-expected end to the third quarter.

Investors in domestic companies in Georgia were weak amid political uncertainty in the former Soviet state.

The Georgian opposition called for protests and the EU demanded an investigation into irregularities after a disputed legislative vote showed a victory for the ruling party.

TBC Bank Group led the FTSE 250 declines, falling 9.9 per cent, or 285 pence, to 2,585 pence and Bank of Georgia Group fell 5.6 per cent, or 225 pence, to 3,775 pence.

Stock Watch

Potash development company Emmerson has suffered a blow after its project in Morocco failed to gain approval.

The group is reviewing its options after Moroccan authorities gave an unfavorable recommendation for its Khemisset Potash project.

Emmerson also revealed board changes and cash management strategies to deal with the impact of the delays. The shares plunged 50.2 per cent, or 0.28p, to 0.28p.