Increased tension in the Gulf region after killing of
an Iranian general caused oil markets to gyrate.
Brent crude spiked above $70 a barrel, a level it
last reached in September, when Iran attacked
Saudi oil installations, before falling back. Saudi
Arabia state-backed oil-tanker firm reportedly
suspended shipments through the Strait of Hormuz.
The price of gold, a trusted haven for investors
in times of uncertainty, leapt to its highest level
in seven years, but also retreated as the crisis
abated. The hostilities were a factor behind a
drop in Saudi Aramco stock. The state-controlled
oil company share price is now 10% lower than the
peak it reached in mid-December, soon after its
IPO on the Riyadh stock exchange. That has
knocked around $200bn off Aramco value, giving
it a market capitalisation of $1.8trn. In his first
press conference since skipping bail in Tokyo
and fleeing to Beirut, Carlos Ghosn claimed
that his ousting as Nissan chairman in 2018
had been plotted to reduce the influence of
Renault, Nissan partner, which Mr Ghosn also
led as the head of a formal alliance. He also
alleged collusion between Nissan and Japanese
prosecutors related to the charges of financial
misconduct levelled against him. Interpol has
issued a red notice for the arrest of Mr Ghosn,
but Lebanon has no extradition treaty with
Japan. The euro zone annual inflation rate
reached a six-month high of 1.3% in December.
That should ease pressure on the European
Central Bank to make another cut to interest
rates in the coming months. Bruno Le Maire,
the French finance minister, said that he was
working closely with Steven Mnuchin, his
American counterpart, to reach a deal within
the next two weeks that would avoid America
imposing tariffs on French products in retaliation
for a digital sales tax that the Trump administration
says is aimed solely at American tech giants. The
pair are expected to meet at the Davos forum in late January.