Global stock markets have continued to take a hammering as oil prices rocketed in their biggest weekly gain for six years, with no sign of a swift resolution to the conflict in the Middle East.

London’s FTSE 100 Index slumped 1.6% lower at one stage before closing about 130 points, or 1.2%, lower at 10,284.75 on Friday.

Declines were compounded by heavy falls on Wall Street, with the S&P 500 and Dow Jones indexes down about 1.1% after European markets had closed.

Gloomy jobs data in the US were adding to market woes, and there were similar declines across Europe as the Dax in Germany and France’s Cac 40 were both 1.5% down at one stage, before paring back some of the losses to close 0.9% and 0.7% lower, respectively.

By Friday evening, benchmark Brent crude prices shot up by as much as another 10% to 94 US dollars a barrel, reaching levels not seen for three years, after Kuwait reportedly joined Qatar and said it was beginning to halt energy production.

The sharp gains since the US-Israel war with Iran began on Saturday mean oil prices have risen by more than 25% so far this week – the biggest weekly gains since early 2020 at the height of the Covid-19 pandemic.

Comments from US President Donald Trump that there would be no end to the conflict until an “unconditional surrender” of the Iranian regime has further dashed hopes of a de-escalation.

Kathleen Brooks, research director at XTB, said: “There is not much to stop (oil) from hitting 100 dollars per barrel in the near term.

“Until the oil price stabilises it’s hard to see how stock markets and bond prices can recover.”

She cautioned over further stock market falls next week.

“If the war continues to escalate over the weekend, we think that markets will continue to sell off, especially after the rapid increase in oil prices today,” she said.

UK Government borrowing costs have also risen sharply this week due to inflation fears.

The yields on 10-year government bonds, also known as gilts, have jumped from 4.27% at the start of the week to 4.62% on Friday, with fears that soaring fuel and energy bills will put paid to further interest rate cuts.

“The rapid repricing of monetary policy expectations and the UK’s history of high energy prices means that UK gilts are particularly vulnerable to this energy price spike,” Ms Brooks said.

Hyderabad: India’s pharmaceutical sector is staring at potential losses of Rs 2,500– Rs 5,000 crore if March exports to the Gulf Cooperation Council (GCC) and the wider West Asia and North Africa (WANA) are completely disrupted by the ongoing West Asia conflict, which is intensifying pressure on freight, shipping routes, and delivery schedules, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil). GCC countries currently account for 5.58% of India’s total exports, with pharma a growing component of that trade. As per recent industry data, Indian pharmaceutical exports to the WANA region rose from $1,320.44 million in FY 2020-21 to $1,749.68 million in FY 2024-25. Countries such as the UAE, Saudi Arabia, Oman, Kuwait, and Yemen rely heavily on India for cost-effective medicines, even as momentum grew in emerging markets such as Jordan, Kuwait, and Libya, with increasing demand for vaccines, surgical products, and AYUSH formulations. However, this growth is now at risk due to ongoing challenges in the global freight market. Pharmexcil Chairman Namit Joshi said tensions in West Asia affected critical maritime and air cargo corridors. Key routes such as the Red Sea, Strait of Hormuz, and Gulf shipping corridors are facing heightened risks of rerouting or delays, threatening delivery schedules. This is a concern, especially for temperature-sensitive products that can be damaged by prolonged transit or cold-chain disruptions. According to Pharmexcil, the conflict already put considerable strain on the global freight market, with freight charges for both imports and exports doubling in some cases. “The doubling of freight charges for both imports and exports, accompanied by surcharges of $4,000–$8,000 per shipment, put substantial pressure on Indian pharmaceutical companies,” Joshi said. Another concern is escalating costs across the pharmaceutical supply chain, with major cost drivers including crude oil price fluctuations, rising logistics costs for APIs and finished formulations, and shipping delays that will affect inventory cycles, he said. Pharmexcil said it is monitoring developments and engaging logistics and trade stakeholders for damage control. It recommended closer coordination with govt authorities for possible freight relief measures, diversification of shipping routes and alternative logistics options, and continued dialogue with international regulators to maintain timely availability of medicines in key markets.

German media firm Axel Springer has agreed to buy the Telegraph Media Group (TMG) for £575 million, scuppering efforts by the owner of the Daily Mail to snap up its UK newspaper rival.

It is the latest major twist in a roughly three-year ownership tussle for the politically influential newspaper group.

Daily Mail and General Trust (DMGT) had previously agreed a £500 million deal to buy The Telegraph last year.

However, Abu Dhabi-backed consortium RedBird IMI said it now plans to sell the business to the Berlin-based Politico owner.

Axel Springer and TMG said the deal will “preserve the integrity” of the brand and help provide a platform for growth.

The companies stressed their commitment to independent journalism in the UK and said they look forward to further discussions with the Department for Culture, Media and Sport (DCMS) and other stakeholders in the coming weeks.

Culture Secretary Lisa Nandy had launched an intervention and competition probe into the previous deal agreed with DMGT, amid concerns of the size of the newspaper market taken up through a merger deal.

Bosses at Axel Springer, which also owns the German newspaper Bild, said they will back an investment programme in TMG to expand the business to help it “become the leading centre-right media outlet in the English-speaking world”.

They also plan to expand the company’s footprint in the US market, potentially leveraging expertise from its Politico and Business Insider titles.

Axel Springer chief executive Mathias Dopfner said: “More than 20 years ago, we tried to acquire The Telegraph and did not succeed.

“Now our dream comes true.

“To be the owner of this institution of quality British journalism is a privilege and a duty.”

In a statement, RedBird IMI said the German business is partly well placed to buy the Telegraph due to the “straightforward regulatory path to ownership” involved in the deal.

“Our team is now working closely with the UK Government to obtain the necessary approvals to finalise this transaction,” the company added.

RedBird IMI is having to sell the Telegraph business after its own takeover move was blocked by the then-Tory government over foreign ownership concerns.

RedBird IMI, which was partly backed by US firm RedBird Capital but majority-owned by Sheikh Mansour bin Zayed Al Nahyan, vice president of the United Arab Emirates, originally agreed to buy the media firm and fellow title The Spectator in 2023.

The Spectator has since been sold to hedge fund tycoon Sir Paul Marshall’s OQS Ventures business for £100 million.

Lengthy talks were then held to find a new suitor after RedBird IMI was forced to sell, with New York Sun publisher Dovid Efune in exclusive discussions to take control.

These collapsed before DMGT struck an agreement with RedBird IMI.

Reports last month indicated that Axel Springer was considering backing a deal with Mr Efune.

On Friday, Axel Springer said it would “like to acknowledge” Mr Efune for “his essential support and assistance on this transaction”.

It is understood that Axel Springer will gain full ownership of TMG as part of the deal.