After Venezuela, Oil and Gold Rise, FTSE soars – Europe Market Wrap

Stocks in Europe rose as rising crude prices increased the appeal of energy businesses following Trump’s announcement of an oil boycott on Venezuela. Gold and the Dollar rose.

Europe’s Stoxx 600 Index rose 0.4%, with BP and Shell up more than 2%. Futures for the S&P 500 increased by 0.4%. Brent crude rose 2.2% to $60.24 a barrel, recovering from its lowest level since 2021.

Trump’s restriction on sanctioned oil tankers entering and departing Venezuela sent gold above $4,330 per ounce, approaching the October high of $4,381. Other precious metals were also rising, with silver surpassing $66 per ounce and platinum reaching its best level since 2008.

The move in Venezuela is a significant escalation, coming after US forces seized an oil tanker off the country’s coast last week. According to those familiar with the situation, the US is also planning to impose further sanctions on Russia’s energy sector if Putin rejects a peace agreement with Ukraine, potentially adding to the rise in geopolitical tensions.

Meanwhile, UK stocks rose the most since April as the smallest inflation rate in eight months depressed the pound by 0.7%. That boosted the appeal of the FTSE 100, whose largest members derive their earnings from overseas.