European stock markets are expected to open lower on the final trading day of the week, as investors continue to assess the ongoing conflict in the Middle East and its long-term implications for economic growth.
According to IG data, the UK's FTSE 100 is projected to open 0.05% lower, France's CAC 40 is forecast to open down 0.25%, and Germany's DAX is anticipated to open 0.29% lower.
European equities closed lower in the previous session, with the pan-European Stoxx 600 index declining approximately 0.7% on Thursday.
Energy prices remain a key focus for markets following a volatile week globally. On Friday, the United States issued a 30-day temporary waiver allowing the offloading of sanctioned Russian oil already in transit, aiming to ease concerns about tightening supplies and surging oil prices.
Despite the International Energy Agency's announcement on Wednesday of a record release of 400 million barrels from emergency petroleum reserves, Brent crude prices held above $100 per barrel, last trading up 0.5% at $100.96.
The U.S. Department of Energy announced it would release 172 million barrels from the Strategic Petroleum Reserve. The U.S. benchmark West Texas Intermediate crude was last quoted at $95.96, down less than 0.3%.
Following several ship attacks in the region this week, U.S. Treasury Secretary Scott Bessent stated that naval escorts for vessels transiting the critical Strait of Hormuz would be provided "as soon as militarily feasible." U.S. Energy Secretary Chris Wright said the escort operation would "begin soon" but is "not yet implementable."
Iran's new Supreme Leader, Mujtaba Khamenei, stated on Thursday evening that Iran would continue to block the shipping channel. The strait has been largely closed since the conflict erupted, contributing to a rapid rise in oil prices.
Persistently rising costs are putting pressure on markets. Asian stocks were broadly under pressure on Friday, with both Japan's Nikkei 225 and South Korea's KOSPI indices moving lower.
U.S. stock futures edged higher, with S&P 500 futures up 0.25%, Dow Jones Industrial Average futures rising 0.32%, and Nasdaq 100 futures gaining 0.12%.
However, U.S. stock markets have registered an overall decline for the week so far.