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Oil prices climbed above $110 a barrel as escalating geopolitical tensions raised concerns about global supply, while gold headed for a weekly loss amid expectations of further Federal Reserve rate hikes.
Tesla shares fell after the company unveiled its redesigned Roadster, while Apple stock edged higher following strong initial demand for its first foldable iPhone.
Oil prices hit $110 as supply concerns intensify
Brent crude rose 3.7% to $110 a barrel, its highest level since May, as traders grew concerned about the prospect of prolonged supply disruptions and diminishing chances of near-term relief.
WTI crude rose 3.24% to above $101.
Iran-backed Houthi rebels continued missile and drone attacks on Saudi Arabia, while Russia and Ukraine exchanged attacks on energy infrastructure.
Reports of a warning over potential danger in Saudi Arabia’s Khamis Mushait added to concerns surrounding major energy export centres.
Uncertainty also surrounded a proposed Russian diesel release.
US lawmakers introduced a bipartisan bill to block President Donald Trump’s deal with Moscow, which would allow Russia to release several hundred million barrels of diesel.
However, continued exclusion of Russian diesel from global markets could force refineries elsewhere to increase processing to meet demand.
A recent attack on Russia’s Ryazan refinery, which reportedly halted a primary processing unit, further complicated the outlook.
Crude prices have risen more than 70% this year amid disruptions linked to the Middle East and Russia-Ukraine conflicts.
European diesel futures have more than doubled, reflecting tightness in refined-product markets.
Gold heads for weekly loss as rate-hike bets rise
Gold prices were largely steady on Friday but remained on track for a weekly decline as stronger-than-expected US inflation data increased expectations of further monetary tightening.
Spot gold fell 0.04% to $4,168.73 an ounce, leaving it down 0.59% for the week. US gold futures for December delivery settled 0.51% higher at $4,191.10 an ounce, which is at 0.59% weekly decline.
US producer prices recorded their largest increase in four and a half years in September, following data showing consumer prices accelerated during the month.
Federal Reserve officials offered mixed signals on the outlook.
Chair Kevin Warsh expressed optimism about the US economy but did not indicate the likely direction of interest rates.
Chicago Fed President Austan Goolsbee described the inflation data as discouraging, while Cleveland Fed President Beth Hammack warned that worsening inflation expectations could require more aggressive rate increases.
Traders largely expect the Fed to hold rates this month but are pricing in a 90% probability of a December hike, according to CME’s FedWatch Tool.
Higher interest rates tend to weigh on gold because the metal does not pay interest.
Tesla stock falls after Roadster unveiling
Tesla shares fell nearly 3% on Friday after the company showcased a redesigned Roadster featuring thrusters developed in collaboration with SpaceX.
The demonstration included the vehicle performing aerial manoeuvres, jumping over obstacles and accelerating from zero to 60 miles per hour in less than a second, according to Tesla’s presentation.
However, production is now targeted for 2028, compared with the original 2020 delivery goal announced in 2017.
Tesla has not disclosed pricing or specifications for other performance variants.
Analysts questioned the car’s potential financial contribution given its expected low production volumes.
Gary Black of The Future Fund estimated that 3,000 annual deliveries and a $100,000 profit per vehicle could add approximately $0.06 per share to Tesla’s 2029 adjusted earnings.
The Roadster could nevertheless strengthen Tesla’s technology-focused brand as the company prioritises autonomous driving and robotics.
Apple shares rise after foldable iPhone sells out
Apple shares edged up on Friday after its first foldable smartphone, the iPhone Duo, reportedly sold out shortly after preorders opened.
Social media users reported that estimated delivery dates had shifted from October 23 to late January, suggesting initial demand was exceeding available supply.
The device features a 5.4-inch external display and a 7.6-inch foldable internal screen.
Apple expects foldable smartphones to account for roughly 10% of the market by 2029.
Separately, Apple Chairman Tim Cook said Apple Intelligence had received regulatory clearance in China, with a test rollout expected later in October.
The company has partnered with Alibaba to use its Qwen AI models in mainland China.
Apple is also working with Meta to optimise its Muse Spark open-weight AI model for high-end Mac computers.
Despite the developments, some analysts remain cautious about iPhone demand, with UBS maintaining a Neutral rating and KeyBanc retaining an Underweight rating.
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