Even with gains in stocks, experts warned that market confidence could weaken if the Middle East crisis continues.

They said that while news of Iraq resuming oil exports has helped calm markets, the bigger concern remains the situation around the Strait of Hormuz.

If tensions rise further, oil prices could increase again and affect global markets.

Key market figures

At around midday GMT, Brent crude stood at $103.46 per barrel, while WTI was at $94.45.

Stock indices showed gains: London’s FTSE 100 rose 0.4 percent, Paris CAC 40 climbed 1.1 percent, and Frankfurt DAX gained 0.9 percent.

In Asia, Tokyo’s Nikkei rose 2.9 percent, Hong Kong’s Hang Seng added 0.6 percent, and Shanghai Composite gained 0.3 percent.

Currency markets saw small changes, with the euro and pound rising slightly against the dollar.

(With AFP inputs)