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Global stock markets and oil prices dropped Thursday as traders assessed the likelihood of the Israel-Hamas crisis turning into a wider conflict in the Middle East. online news

Europe’s main stock markets extended the week’s losses, after heavy falls earlier in Asia and on Wall Street.

Gold continued to be buoyed by investors flocking to the haven investment.

Palestinians in the Gaza Strip desperately awaited the arrival of aid trucks Thursday, promised under a deal US President Joe Biden struck with Egypt and Israel.

Biden, on a flying visit to meet Prime Minister Benjamin Netanyahu and his war cabinet on Wednesday, reiterated strong US support for the long-time ally but also stressed the need to address the plight of Palestinian civilians.

Britain’s Prime Minister Rishi Sunak on Thursday became the latest foreign leader to make a solidarity visit to Israel.

“US (stocks) markets experienced a troubled session last night and negativity spread across Europe and Asia on Thursday,” noted AJ Bell investment director Russ Mould.

There are fears of worse to come if Israel launches its anticipated ground invasion aimed at destroying Hamas and rescuing Israeli and foreign hostages, whose known number Israel on Thursday revised up to 203.

The conflict — sparked by the bloody October 7 Hamas attack on Israel that officials said has claimed more than 1,400 lives — has set off a wave of fury across the Middle East against Israel and its Western allies.

The violence has claimed at least 3,500 lives in Gaza, its Hamas-controlled health ministry said. Entire city blocks have been levelled, water, food and power have been cut off, and over one million people have been displaced.

The prospect of a wider conflict had pushed up oil prices Wednesday, though Washington’s decision to suspend some sanctions on Venezuelan output tempered the gains and both contracts slid two percent on Thursday.

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Risk aversion among traders was increased by concerns the Federal Reserve would hike interest rates again, or at least keep them elevated for an extended period.

That has pushed US 10-year Treasury yields above 4.9 percent for the first time since 2007, fanning even more unease on trading floors, with focus turning to a speech Thursday from Fed boss Jerome Powell.

Key figures around 1100 GMT

London – FTSE 100: DOWN 0.8 percent at 7,524.59 points

Frankfurt – DAX: DOWN 0.2 percent at 15,070.91

Paris – CAC 40: DOWN 0.6 percent at 6,926.40

EURO STOXX 50: DOWN 0.1 percent at 4,102.67

Tokyo – Nikkei 225: DOWN 1.9 percent at 31,430.62 (close)

Hong Kong – Hang Seng Index: DOWN 2.5 percent at 17,295.89 (close)

Shanghai – Composite: DOWN 1.7 percent at 3,005.39 (close)

New York – Dow: DOWN 1.0 percent at 33,665.08 points (close)

Euro/dollar: UP at $1.0539 from $1.0536 on Wednesday

Pound/dollar: DOWN at $1.2094 from $1.2140

Dollar/yen: DOWN at 149.85 yen from 149.93 yen

Euro/pound: UP at 87.14 pence from 86.78 pence

Brent North Sea crude: DOWN 2.0 percent at $89.65 per barrel

West Texas Intermediate: DOWN 1.9 percent at $86.67 per barrel

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