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Oil prices extended their gains on Thursday, with Brent crude climbing above $97 per barrel after Houthi militants claimed responsibility for attacks on two Saudi oil tankers in the Red Sea, heightening concerns over global energy supplies.

September Brent crude futures rose 3.6% to $97.45 per barrel, while West Texas Intermediate (WTI) futures gained 2.7% to $89.17 per barrel.

The latest advance lifted Brent to its strongest level since early June, reversing the decline that followed the temporary ceasefire between the United States and Iran.

Shipping risks return to the forefront

According to the Houthis, the Saudi tankers ENCELA and LAYLIA were targeted for allegedly violating a recently announced maritime blockade.

Although Saudi officials have not reported any damage, the attacks have reinforced concerns that the conflict is spreading to critical maritime trade routes used by the global energy industry.

Earlier warnings from the group about blocking Saudi-linked shipping through the Bab el-Mandeb Strait have intensified fears of prolonged disruption. Any sustained interruption could force vessels to take longer routes around southern Africa, raising freight costs and delaying deliveries.

Markets monitor Hormuz developments

Investors also remained focused on the Strait of Hormuz after another round of U.S. military strikes on Iran increased geopolitical uncertainty.

Iran’s Revolutionary Guards reported an explosion near a mined shipping lane south of the strait, adding that one tanker caught fire while two others changed course.

Iranian authorities reiterated that the Strait of Hormuz was “fully closed” and stated that commercial oil tankers would require prior coordination before entering the waterway.

With both Hormuz and Bab el-Mandeb handling a substantial share of global crude exports, traders continue to price in elevated geopolitical risk.

U.S. inventories rise unexpectedly

Fresh inventory figures from the U.S. Energy Information Administration showed commercial crude stockpiles increased by 2.0 million barrels to 411.7 million barrels during the week ended July 17.

Gasoline inventories rose by 0.8 million barrels, distillate stocks increased by 1.4 million barrels and total commercial petroleum inventories climbed by 11.6 million barrels.

The unexpected inventory build provided some balance to supply concerns, although geopolitical developments continued to dominate market sentiment.

Gold prices remained near a two-week high on Thursday as investors weighed safe-haven demand generated by escalating tensions in the Middle East against concerns that rising oil prices could keep inflation elevated and delay any easing of U.S. monetary policy.

Spot gold (XAU/USD) edged 0.1% lower to $4,127.99 an ounce, while Gold Futures slipped 0.5% to $4,130.62. Silver (XAG/USD) gained 0.3% to $59.88 an ounce and platinum (XPT/USD) advanced 0.8% to $1,658.28.

After climbing roughly 3% over the previous two sessions, bullion paused as investors evaluated the next major catalysts.

Oil prices reinforce inflation concerns

The conflict between the United States and Iran continued to dominate financial markets, with renewed attacks on commercial shipping in the Red Sea adding to concerns over global energy supplies.

The disruption has helped keep crude oil prices elevated, increasing expectations that inflation could remain above central bank targets for longer.

A prolonged period of higher inflation could encourage the Federal Reserve to maintain restrictive interest rates, a scenario that typically limits upside for non-yielding assets such as gold.

Focus turns to next week’s Federal Reserve meeting

Markets remain uncertain about the Fed’s next move, with investors closely watching next week’s policy meeting for updated guidance on interest rates.

Any indication that policymakers intend to keep borrowing costs elevated for an extended period could influence precious metal prices in the near term.

Investor demand remains resilient

Analysts at ANZ said investor appetite for gold has remained resilient despite expectations of tighter monetary policy.

The bank highlighted rising speculative long positions and stronger inflows into gold-backed exchange-traded funds, suggesting that many investors continue to use bullion as a hedge against market volatility and expensive equity valuations.

Gold has also remained comfortably above the key $4,000 level, with traders watching whether the metal can extend its recovery toward resistance around $4,200.

U.S. equity futures traded lower on Thursday as investors evaluated earnings from several technology heavyweights, while attention also shifted to the European Central Bank’s latest interest rate decision against a backdrop of elevated oil prices and geopolitical uncertainty.

Investor sentiment weakens amid inflation concerns

Futures linked to the Dow Jones, S&P 500 and Nasdaq 100 all slipped around 0.4% before the opening bell, extending a cautious mood across global markets.

Renewed military tensions between the United States and Iran, together with attacks threatening key shipping routes in the Strait of Hormuz and the Red Sea, continued to support higher crude oil prices. The move has intensified concerns that energy-driven inflation could remain persistent, complicating the outlook for central bank policy.

Big Tech continues to invest heavily in AI

Alphabet (NASDAQ:GOOG) announced another increase in capital spending as it accelerates investment in artificial intelligence infrastructure.

The company lifted its annual capital expenditure target to approximately $205 billion and reported negative free cash flow after second-quarter investment spending climbed to around $45 billion. Investors are increasingly focused on whether these substantial AI investments will translate into stronger long-term earnings growth.

Tesla (NASDAQ:TSLA) also remained under pressure after reporting negative free cash flow as spending on AI and robotics accelerated. Chief Executive Elon Musk defended the elevated investment levels, describing them as essential to the company’s future strategy despite a negative short-term impact on cash generation.

Meanwhile, IBM (NYSE:IBM) lowered its full-year revenue growth forecast following weaker infrastructure sales during the second quarter, although management reiterated confidence in the company’s long-term AI opportunities.

ECB decision takes centre stage

Market attention now turns to the European Central Bank, which is widely expected to leave interest rates unchanged at 2.25%.

However, investors will closely examine the accompanying statement and comments from President Christine Lagarde for signals on whether policymakers remain concerned about inflation risks stemming from higher energy prices and geopolitical instability.

With inflation still running above target, traders continue to assess whether borrowing costs could remain elevated for longer than previously anticipated.

New passenger car registrations across Europe posted another month of solid growth in June, supported by continued demand for electric and hybrid vehicles despite ongoing geopolitical uncertainty.

According to data released by the European Automobile Manufacturers’ Association (ACEA), registrations across the European Union, EFTA countries and the United Kingdom increased 13.1% year-on-year to 1.41 million vehicles.

During the first six months of 2026, total registrations rose 6.1% to 7.23 million units.

Electrified vehicles continue to drive market expansion

ACEA said the European automotive market continued to benefit from strong consumer interest in electrified vehicles, even as geopolitical tensions continued to cloud the economic outlook.

Battery-electric vehicle (BEV) registrations climbed 51.0% in June to 360,843 units.

Plug-in hybrid registrations increased 22.7%, while hybrid-electric vehicle sales advanced 17.1%.

In contrast, demand for conventional combustion vehicles weakened, with petrol registrations falling 12.2% and diesel registrations declining 16.9% compared with June 2025.

Chinese brands expand market share

Chinese manufacturers continued to strengthen their position in the European market.

BYD (USOTC:BYDDY) nearly tripled its June registrations compared with the same month last year, while Chery Automobile (HK:9973) recorded a 271% increase in sales. SAIC Motor also posted strong growth, with registrations rising 50.7%.

Tesla (NASDAQ:TSLA) also delivered a robust performance, reporting a 72.1% increase in registrations during June.

Electric vehicles increase their share of the market

Battery-electric vehicles accounted for 20.7% of all new registrations across the European Union during the first half of 2026, up from 15.6% a year earlier.

Hybrid vehicles remained the region’s leading powertrain, representing 37.3% of all new vehicle registrations across the bloc.

Videndum PLC (LSE:VID) shares slumped 42.5% to a record low after the imaging and content creation technology group issued a sharp profit warning, citing disruption linked to the conflict in the Middle East, while also announcing a change in its leadership team.

Middle East disruption weighs on trading

The company said first-half trading proved more difficult than anticipated as the ongoing conflict in the Middle East disrupted its operations.

According to Videndum, higher logistics costs, longer delivery times and delays in customer purchasing decisions negatively affected financial performance during the period.

Company cuts full-year profit expectations

Reflecting the weaker trading environment, Videndum lowered its full-year guidance and now expects adjusted core profit to be between £15 million and £18 million, a significant reduction from its previous outlook.

The revised forecast highlights the impact that supply chain challenges and softer customer demand have had on the group’s earnings expectations.

New chief executive appointed

Alongside the trading update, Videndum announced the appointment of Jan Peter Tewes as Group Chief Executive Officer.

The combination of the lower profit forecast and leadership transition prompted a sharp sell-off in the company’s shares, sending the stock to its lowest level since listing.

Aston Martin Lagonda Global Holdings (LSE:AML) shares climbed 7.7% after the luxury car manufacturer announced a new £550 million ($736 million) debt financing agreement designed to strengthen its liquidity and support its ongoing business operations.

HPS Investment Partners leads funding package

The financing has been arranged by funds managed by HPS Investment Partners, a firm owned by BlackRock. According to Aston Martin, the package consists of a £450 million term loan, a £100 million delayed draw loan and an additional £100 million of permitted debt capacity.

The agreement provides the company with greater financial flexibility as it continues to execute its strategy in the global luxury automotive market.

Financing strengthens liquidity position

The new funding is expected to enhance Aston Martin’s liquidity, providing additional resources to support operations and future business initiatives.

The company said the financing package forms part of its broader efforts to maintain a solid financial position while continuing to invest in its premium vehicle portfolio and long-term growth plans.

Getlink SE (EU:GET) increased its full-year 2026 earnings guidance after reporting first-half EBITDA slightly ahead of market expectations, supported by a sharp improvement in performance from its ElecLink electricity interconnector.

ElecLink delivers strong earnings contribution

First-half EBITDA exceeded analyst forecasts by around 50 basis points, with ElecLink emerging as the main growth driver. EBITDA from the electricity interconnector climbed 79% year-on-year, benefiting from the absence of one-off provisions that affected results in the prior-year period.

The company also increased its full-year EBITDA guidance to a range of €835 million to €870 million. The midpoint of €852.5 million represents an improvement of around 150 basis points compared with previous guidance, although it remains below the company-compiled consensus estimate of €881 million.

Shuttle operations maintain positive momentum

Getlink reported resilient trading across its shuttle businesses during the first half of the year. Passenger vehicle services delivered solid pricing performance, while truck shuttle operations continued to gain market share, particularly in the closing months of the reporting period.

Free cash flow came in ahead of expectations, supported by favourable working capital movements. Capital expenditure reached €81 million, marginally above the company consensus forecast of €79 million, while overall EBITDA remained broadly in line with market projections.

Capacity sales strengthen outlook

ElecLink has already secured advance sales worth €305 million, covering around 98% of its available capacity for 2026. At full utilisation, expected revenue would reach approximately €311 million, slightly ahead of analyst expectations of €307 million.

Getlink operates the Channel Tunnel linking the United Kingdom and France, providing passenger shuttle, freight shuttle and rail infrastructure services. It also owns and operates the ElecLink subsea electricity interconnector connecting the two countries.

Management’s upgraded guidance reflects confidence in the group’s operational performance, although analysts expect consensus forecasts to remain largely unchanged following the results. Based on 2027 estimates, Getlink currently trades on an implied free cash flow yield of around 3.5% and a dividend yield of approximately 4.7%.