Trending 
Crude oil prices surged to five-month highs on Friday as Brent North Sea benchmark contracts breached $115 a barrel, fuelled by ongoing Middle East conflicts and rising winter energy demand.
Global markets reacted negatively to the energy spike and growing doubts over the sustainability of massive tech sector debt financing.
“Oil is at five-month highs amid speculation there may be renewed US-Israeli strikes after next month’s US midterm elections,” noted AJ Bell, head of financial analysis, and Danni Hewson, who added that escalating tensions in Ukraine further exacerbated global supply fears.
Read More : Volvo Cuts 2,500 Jobs After Q3 Loss
The sharp rise in energy costs sparked inflation fears across major stock exchanges, dampening market sentiment and dragging Wall Street’s main indices lower at the opening bell.
Analysts warned that prolonged energy inflation could trigger central bank rate hikes, raising borrowing costs for companies funding rapid AI developments.
European equity markets fell sharply alongside US indices, compounded by disappointing corporate earnings reports.
French luxury conglomerate Kering saw its shares plummet over 16 per cent after failing to reassure investors regarding a turnaround at Gucci, while Volvo Cars crashed more than 26 per cent following a third-quarter loss linked to Chinese competition and US tariffs.
In response to the losses, Volvo announced a five-billion-kronor savings plan that will eliminate 2,500 jobs worldwide.
Read More : Turkey Cuts Interest Rate
Despite reporting above-forecast earnings, tech giants including Meta and Lam Research suffered notable stock declines this week as investors grew demanding over high valuations.
“Strong results are no longer enough if the outlook fails to match an already demanding valuation,” observed FOREX.com market analyst Fawad Razaqzada, emphasising that investors are becoming much less forgiving.
Investors now pivot their attention toward upcoming interest rate decisions from the US Federal Reserve and the European Central Bank alongside key US economic growth data.
