Oil prices rise as Iran and Israel trade strikes in defiance of Trump
Poinews.com – Global crude oil markets saw a notable increase in early Monday trading, driven by escalating tensions between Iran and Israel. The Israeli military’s aerial assault on Iranian targets in central and western regions came in retaliation for recent missile strikes. Iranian state media confirmed explosions in Isfahan, Tabriz, and Tehran, though specifics were not immediately released.
Ceasefire Efforts Under Pressure
American-Iranian diplomats had previously struck a preliminary agreement to prolong their ceasefire. However, the latest attacks have complicated attempts to solidify peace. Trump reportedly intervened, urging Israeli leaders to hold back from further strikes. “I’ll contact Bibi immediately and counsel him against retaliation,” stated Trump in a call, as relayed by Axios reporter Barak Ravid. “Both sides have already struck. We can’t afford more conflict,” he added, using Netanyahu’s informal title.
“I’ll contact Bibi immediately and counsel him against retaliation,” stated Trump in a call, as relayed by Axios reporter Barak Ravid. “Both sides have already struck. We can’t afford more conflict,” he added, using Netanyahu’s informal title.
Market Volatility Across Regions
European stock indices opened with declines, reflecting investor unease. Germany’s Dax fell 1.19%, France’s CAC 40 dropped 0.94%, and the UK’s FTSE 100 edged lower by 0.35%. Italy’s FTSE MIB also experienced a 0.44% dip. Meanwhile, in Asia-Pacific markets, South Korea’s Kospi retreated 6.8% to 7,605.42, with Samsung Electronics leading the decline. SK Hynix and Taiwan’s Taiex also saw losses of 3.3% and 3.8%, respectively.
Japan’s Nikkei 225 plunged 4.2% to 63,804.77, while Hong Kong’s Hang Seng lost 1.3% to 24,631.64. The Shanghai Composite dipped 1.1% to 3,984.75. The Japanese government revised its first-quarter GDP growth estimate to 1.8%, below the prior 2.1% projection.
Wall Street and Bond Yields
Wall Street concluded the previous week with a sharp downturn. The S&P 500 fell 2.6% to 7,383.74, marking its largest single-day drop since October 10. The Dow Jones Industrial Average dropped 1.4% to 50,866.78, while the Nasdaq composite slid 4.2% to 25,709.43. This follows a report indicating the US added 172,000 jobs in May, prompting a surge in bond yields.
The 10-year Treasury yield rose to 4.54% from 4.50% before the report, while the 2-year yield climbed to 4.16% from 4.04%. These movements reflect heightened concerns over inflation, despite the Fed’s efforts to stabilize rates. The US dollar strengthened to 160.35 yen from 160.25, while the euro rose to $1.1530 from $1.1515.
