Crude edges up after wild swing, stocks track Wall St rally

With peace talks between the United States and Iran stalled for the past week, there appears to be little sign that they will agree a deal to reopen the Strait of Hormuz any time soon, choking off a fifth of the world's oil and gas supplies.

After tumbling early in April on news of a ceasefire between the rivals, crude has spiked in recent weeks amid stuttering negotiations, and they soared Thursday after Axio said Donald Trump would be briefed on potential fresh military strikes.

The report compounded fears after the US president warned the blockade of Iranian ports could last months.

Brent for June delivery hit a peak above $126 before easing back to end at $114, which was down for the day. Its July contract, which had been cheaper, started Friday by rising more than one percent.

West Texas Intermediate's June contract, which was still being traded, was also slightly up.

Investors are now keeping an eye on Washington and Tehran, hoping for fresh moves towards ending the crisis -- which is hammering the global economy -- with the British and European central banks warning of a spike in inflation.

Meanwhile, the United States is seeking to assemble an international coalition of allied states and shipping firms to coordinate safe passage through Hormuz -- while maintaining its blockade of ships serving Iran, a State Department official told AFP.

That came as International Energy Agency chief Fatih Birol warned the world faced a "major energy and economic challenge" as oil prices soar, and warned of "the biggest energy crisis in history".

UN chief Antonio Guterres said the closure of Hormuz was "strangling the global economy" and that even if restrictions were lifted today, "supply chains will take months to recover, prolonging lower economic output and higher prices".

Still, stocks rose on a day when the majority of markets in Asia Pacific were shut for a holiday. Tokyo, Sydney and Wellington were all up.

The gains were helped by tech firms, tracking Wall Street's sharp gains that saw the S&P 500 and Nasdaq once again end at record highs thanks to strong earnings and economic data.

Google parent Alphabet soared 10 percent after it posted on Wednesday forecast-topping profits and solid revenue across its major divisions.

And after the market close on Thursday, Apple said earnings beat expectations thanks to strong iPhone demand.

The news helped offset concerns about its huge AI spending by Meta.

Meanwhile, the US Commerce Department estimated the world's biggest economy grew by an annual rate of 2.0 percent in the first three months of this year. A key factor was a surge in artificial intelligence investments, although consumer spending cooled.

On currency markets, the yen weakened slightly, a day after surging on speculation Japanese authorities had stepped in to provide support.

The unit finished Thursday just above 157 per dollar, compared with 160.72 earlier in the day.

Officials had recently warned about moves in the market that had seen the yen drop, suggesting they were ready to intervene.

But the country's top currency official, Atsushi Mimura refused to comment on suggestions Japan had stepped in, but said authorities were in close communication with US counterparts.
Key figures at 0200 GMT
Brent North Sea Crude: UP 1.2 percent to $111.67 a barrel

West Texas Intermediate: UP 0.5 percent at $105.60 a barrel

Tokyo - Nikkei 225: UP 0.6 percent at 59,646.91 (break)

Hong Kong - Hang Seng Index: Closed for a holiday

Shanghai - Composite: Closed for a holiday

Dollar/yen: UP at 157.14 yen from 156.60 yen on Thursday

Euro/dollar: UP at $1.1732 from $1.1731

Pound/dollar: UP at $1.3606 from $1.3602

Euro/pound: DOWN at 86.22 pence from 86.25 pence

New York - Dow: UP 1.6 percent at 49,652.14 (close)

London - FTSE 100: UP 1.6 percent at 10,378.82 (close)