CANARY WHARF, London — Markets are in store for another volatile day as another escalation in the Middle East conflict kept oil prices at triple digits but crude oil edged above US$100 a barrel again at two dollars more with United States easing sanctions to allow countries to buy Russian oil stranded at sea.

In a statement, US treasury secretary Scott Bessent disclosed that the temporary measure was aimed at promoting 'stability in global energy markets' even as he noted that the 'short-term' waiver would 'not provide significant financial benefit to the Russian government'.

Based on the latest developments, markets are set to close the week lower as signs that the Middle East conflict might be resolved quickly are quickly dwindling.

The London-based Financial Times Stick Exchange (FTSE) fell as much as 0.8 percent at the opening bell in line with European stocks before settling down 0.4 per cent at 10,261 points.

Meanwhile, hhe US has loosened sanctions, now allowing countries to buy stranded Russian oil stranded but still, there is increasing concern about how the economy might manage another energy crisis after official figures showed the economy flatlining in January, just before the conflict.

"It doesn't bode well for the resilience of companies ahead, faced with escalating energy prices which are likely to see many businesses battening down the hatches, putting investment plans on hold while hoping the storm subsides," Wealth Club chief investment strategist Susanna Streeter cited.

Accordingly, the International Energy Agency (IEA)'s record release of 400 million barrels of emergency reserves and an easing on Russian sanctions, has not actually countered worries that there will be a severe disruption to oil and gas supply, which could have a long-term impact on inflation.

Iran's new supreme leader Mojtaba Khamenei has pledged to continue to block the Strait of Hormuz and the US president Donald Trump's pledge to escort tankers through the shipping route remain far-fetched at this point.

With financial stocks coming under pressure as banks operating in the region are shutting shop amid fears of strikes, Streeter described the situation as "banks with significant exposure to the Middle East have suffered losses this week as shareholders fret about the length of the conflict and the effect on consumer and business sentiment across the region."