Asian stocks up as Trump announces Iran-Israel ceasefire
Investors were relieved that Iran did not retaliate to a US attack on its nuclear facilities by throttling oil transport through the strategic Strait of Hormuz.
On Monday, Iran said it had launched missiles at a major US base in Qatar, which described the situation as stable, while analysts said oilfield assets were unaffected.
"Tehran played it cool. Their 'retaliation' hit a US base in Qatar -- loud enough for headlines, quiet enough not to shake the oil market's foundations," said Stephen Innes at SPI Asset Management.
"And once that became clear, the war premium came crashing out of crude," with Brent and the main US crude contract WTI sliding more than seven percent overnight.
Both oil contracts were down over two percent on Tuesday.
In Asia, the mood was largely upbeat, with Tokyo and Hong Kong up 1.4 percent, Shanghai gaining 0.8 percent and Seoul jumping 2.7 percent.
Singapore gained 0.7 percent, Sydney was up 1.1 percent and Taipei put on 1.8 percent, but Jakarta was down 1.7 percent.
Trump said Iran and Israel had agreed to a staggered ceasefire that would bring about an "official end" to their conflict, as strikes continued to hammer Tehran.
Iran's foreign minister said Tuesday that Tehran did not intend to continue its strikes if Israel stopped its attacks.
"Details of the ceasefire agreement are still sparse at the time of writing and as such the detente and de-escalation is not a done deal," wrote Michael Wan at MUFG.
"Nonetheless, latest news reports suggest Iran has agreed to the ceasefire and if this is right, the left tail risk of more extreme scenarios resulting in significant oil supply disruptions have meaningfully diminished."
In forex markets, the dollar gave up gains after Federal Reserve Governor Michelle Bowman said she would support cutting interest rates at July's meeting if inflation holds steady.
The market currently expects the Fed to resume cutting interest rates in September.
Bowman indicated that "ongoing progress in tariff negotiations providing a less risky economic environment to adjust policy"," prompting the dollar to weaken, Wan said.
Key figures at around 0200 GMT
Tokyo - Nikkei 225: UP 1.4 percent at 38,873.07
Hong Kong - Hang Seng Index: UP 1.4 percent at 24,025.13
Shanghai - Composite: UP 0.8 percent at 3,886.66
Euro/dollar: UP at $1.1590 from $1.1581 on Monday
Pound/dollar: UP at $1.3539 from $1.3526
Dollar/yen: DOWN at 145.66 yen from 146.12 yen
Euro/pound: FLAT at 85.60 pence
West Texas Intermediate: DOWN 2.3 percent at $66.19 per barrel
Brent North Sea Crude: DOWN 2.2 percent at $69.24 per barrel
New York - Dow: UP 0.9 percent at 42,581.78 (close)
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Euronews
2 hours ago
- Euronews
More flights cancelled and delayed after US strikes on Iran
The US entry into Israel's conflict with Iran has caused global travel disruptions to pile up. Following unprecedented bombings ordered by President Donald Trump on three Iranian nuclear and military sites over the weekend, Iran on Monday launched a missile attack on US forces at Qatar's Al Udeid Air Base. Qatar had closed its airspace just hours earlier, after both the US and UK urged their citizens there to shelter in place. The region has been on edge following the weekend strikes from the US, and since Israel began the conflict with a surprise bombardment on Iran, which responded with its own missile and drone strikes, earlier this month. As deadly attacks escalated between Israel and Iran, sections of airspace and airports throughout the region have temporarily closed. And airlines cancelled more flights in recent days, with some halting select routes through the middle of the week, particularly in Qatar and the United Arab Emirates, just across the Persian Gulf from Iran. Have flights to Dubai and Doha been cancelled? Air tracking data from FlightAware showed 243 cancellations worldwide as of Tuesday morning. Dubai International Airport topped the list with 26 cancellations in and out of the airport as of 0600 GMT. And Air India had had the highest amount of cancellations among carriers, totalling 25 at about 0600 GMT. Middle East carriers were severely affected by cancellations and delays. Qatar Airways said its flights were suspended because of the closure of air traffic in Qatar. 'The airline is working closely with government stakeholders and the relevant authorities to support impacted passengers, and will resume operations when the airspace reopens,' it said, while warning that delays were likely even after operations resume. Additional ground staff were sent to Hamad International Airport and other key airports to assist affected passengers, it said. Emirates suspended all flights to Iran and Iraq, including those serving Baghdad and Basra, until and including Monday 30 June 2025. An unspecified number of other Emirates flights were rerouted but continuing to operate flights as scheduled, using flight paths well distanced from conflict areas. Some flights may be delayed. Etihad Airways, the other of the two flag carriers of the United Arab Emirates, suspended all flights between Abu Dhabi and Tel Aviv through 15 July, and also announced several regional flight cancellations for Monday and Tuesday, including those connecting Abu Dhabi to and from Kuwait, Doha, Dammam and Muscat. Gulf Air, the carrier of the Kingdom of Bahrain, extended the cancellation of scheduled flights to Jordan until June 27. 'As the safety of its passengers and crew members remains a top priority, Gulf Air will continue to monitor developments in the region closely, and work with its partners to help accommodate and reroute passengers affected by these flight cancellations,' it said. Singapore Airlines, for example, cancelled some flights to and from Dubai starting Sunday and through Wednesday, citing 'a security assessment of the geopolitical situation in the Middle East.' And British Airways has similarly suspended flights to and from Doha through Wednesday. 'Safety is always our highest priority,' British Airways said in a statement confirming its cancellations to The Associated Press, adding that it 'will keep the situation under review.' Air India on Monday announced it was ceasing 'all operations to the region as well as to and from the East Coast of North America and Europe' immediately until further notice. The airline, which is still reeling from a plane crash that killed at least 270 people earlier this month, added that India-bound flights from North America were being diverted or rerouted away from closed airspaces. Philippine Airlines cancelled several flights to the Middle East, including those to Doha, Dubai and Riyadh for Tuesday and one to Doha on Wednesday. Japan Airlines said a flight from Tokyo's Haneda airport to Doha had to return on Monday, and subsequently, scheduled flights have all been cancelled through June 27. Keeping passengers safe Such disruptions have snarled travel, particularly as central hubs in the Middle East often connect flights worldwide, but experts stress that these kinds of airspace closures and flight diversions are critical to ensuring safety, especially if future escalation emerges suddenly. 'It is the responsibility of states, countries to ensure that their airspace is safe for the passage of aircraft,' Hassan Shahidi, president and CEO of the Flight Safety Foundation. He added that on Monday, 'the Qataris did the absolutely right thing to close their airspace because of the threat of conflict.' Beyond Qatari airspace, Flightradar24 reported that UAE airspace was also closed on Monday. After several hours of diversions, flights appeared to be landing and taking off in the country again. Monday marks the latest 'dramatic increase' in this kind of impact, said Ian Petchenik, director of communications at Flightradar24. A nd while the future is unknown, he added that it's important to remember airspace closures and flight cancellations reflect that 'airlines, air traffic controllers and flight crews are doing their best to keep everybody safe.' Shahidi adds that it's important for travellers to monitor government guidance, such as safety notices from their country's foreign office. How long the conflict lasts and what, if any, future escalation comes next could carry more widespread implications. Beyond disrupting global flight networks farther down the road, Shahidi stresses that it's very difficult for people who may need or want to evacuate countries impacted by the conflict to do so without access to commercial flights. At the same time, he adds, it's critical that state authorities focus on keeping their skies safe, pointing to past tragedies of passenger flights that were shot down by strikes. That includes Malaysia Airlines Flight 17, which was shot down by Russian-backed forces while flying over Ukraine in 2014, killing 298 people. 'We are all praying and urging resolution to this conflict — and especially as it relates to protection of civilian air travel," Shahidi said. "We do not want to have an MH17, with innocent lives being lost in a missile strike ... We do not want to repeat that history.'
Euronews
3 hours ago
- Euronews
Oil price drops, shares jump as Trump announces Israel-Iran ceasefire
Stocks rallied on Tuesday after US President Trump said that a "complete and total ceasefire" between Iran and Israel would take effect in the coming hours. Iran's foreign minister denied that an official ceasefire agreement had been reached, but noted that Tehran would not continue its attacks as long as Israel halted its 'aggression'. At the time of writing, Israel had yet to comment. The truce, which Trump is labelling the end of the '12-day war', came after Iran attacked a US base in Qatar on Monday, retaliating against the US bombing of its nuclear sites over the weekend. In response to Tuesday's development, oil prices dropped as fears over a blockage to the Strait of Hormuz subsided. About 20% of global oil and gas flows through this narrow shipping lane in the Gulf. Brent crude, the international standard, dropped 2.92% to $69.39, while WTI dropped 3.18% to $66.35. Last week, Brent reached over $78 a barrel, a level not seen since the start of this year. Looking to the US, S&P 500 futures rose 0.58% to 6,112.00 on Monday, while Dow Jones futures increased 0.51% to 43,118.00. Australia's S&P/ASX 200 jumped 0.89% to 8,550.10, South Korea's Kospi rose 2.75% to 3,097.28, and the Shanghai Composite index climbed 1.07% to 3,417.89. Hong Kong's Hang Seng rose 2% to 24,162.70 and the Nikkei 225 increased 1.16% to 38,796.39. The US Dollar Index slipped by 0.32% to 98.10. The euro gained 0.25% against the dollar while the yen dropped 0.48% in comparison to the greenback. Economists had suggested that persistent threats to oil would increase the value of the US dollar and hurt other currencies such as the euro, notably as the US economy is more energy independent. Greg Hirt, chief investment officer with Allianz Global Investors, told Euronews earlier this week that although the dollar may see a short lift on the Iran-Israel conflict, 'structural issues around a twin deficit and the Trump administration's volatile handling of tariffs should continue to weigh on an overvalued US dollar'.
France 24
5 hours ago
- France 24
NATO summit opens amid discord over defence spending and Ukraine
U.S. President Donald Trump and his NATO counterparts are due to gather Tuesday for a summit that could unite the world's biggest security organization around a new defense spending pledge or widen divisions among the 32 allies. Just a week ago, things had seemed rosy. NATO Secretary-General Mark Rutte was optimistic the European members and Canada would commit to invest at least as much of their economic growth on defense as the United States does for the first time. Then Spain rejected the new NATO target for each country to spend 5% of its gross domestic product on defense needs, calling it 'unreasonable.' Trump also insists on that figure. The alliance operates on a consensus that requires the backing of all 32 members. The following day, Trump said the U.S. should not have to respect the goal. 'I don't think we should, but I think they should,' he said. Trump lashed out at Prime Minister Pedro Sánchez's government, saying: 'NATO is going to have to deal with Spain. Spain's been a very low payer." He also criticized Canada as 'a low payer.' Spain was the lowest spender in the alliance last year, directing less than 2% of its GDP on defense expenditure, while Canada was spending 1.45%, according to NATO figures. Then Trump ordered the bombing of nuclear installations in Iran. In 2003, the U.S.-led war on Iraq deeply divided NATO, as France and Germany led opposition to the attack, while Britain and Spain joined the coalition. European allies and Canada also want Ukraine to be at the top of the summit agenda, but they are wary that Trump might not want President Volodymyr Zelenskyy to steal the limelight. A short summit, decades of mutual security The two-day summit in The Hague involves an informal dinner Tuesday and one working session Wednesday morning. A very short summit statement has been drafted to ensure the meeting is not derailed by fights over details and wording. 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A civilian runs NATO, but the U.S. and its military hold power The United States is NATO's most powerful member. It spends much more on defense than any other ally and far outweighs its partners in terms of military muscle. Washington has traditionally driven the agenda but has stepped back under Trump. The U.S. nuclear arsenal provides strategic deterrence against would-be adversaries. NATO's day-to-day work is led by Rutte, a former Dutch prime minister . As its top civilian official, he chairs almost weekly meetings of ambassadors in the North Atlantic Council at its Brussels headquarters. He chairs other 'NACs' at ministerial and leader levels. Rutte runs NATO headquarters, trying to foster consensus and to speak on behalf of all members. NATO's military headquarters is based nearby in Mons, Belgium. It is always run by a top U.S. officer. Ukraine's role at the summit is unclear With Trump demanding greater defense spending, it's unclear what role Ukraine will play at the summit. Zelenskyy has been invited, but it's unclear whether he will have a seat at NATO's table, although he may take part in Tuesday's dinner. Russia's war in Ukraine usually dominates such meetings. More broadly, NATO itself is not arming Ukraine. As an organization, it possesses no weapons of any kind. Collectively, it provides only non-lethal support — fuel, combat rations, medical supplies, body armor, and equipment to counter drones or mines. But individually, members do send arms. European allies provided 60% of the military support that Ukraine received in 2024. NATO coordinates those weapons deliveries via a hub on the Polish border and helps organize training for Ukrainian troops. NATO's troop plans A key part of the commitment for allies to defend one another is to deter Russia, or any other adversary, from attacking in the first place. Finland and Sweden joined NATO recently because of this concern. Under NATO's new military plans, 300,000 military personnel would be deployed within 30 days to counter any attack, whether it be on land, at sea, by air or in cyberspace. But experts doubt whether the allies could muster the troop numbers. It's not just about troop and equipment numbers. An adversary would be less likely to challenge NATO if it thought the allies would use the forces it controls. Trump's threats against U.S. allies — including imposing tariffs on them — has weakened that deterrence. The U.S. is carrying the biggest military burden Due to high U.S. defense spending over many years, the American armed forces have more personnel and superior weapons but also significant transportation and logistics assets. Other allies are starting to spend more, though. After years of cuts, NATO members committed to ramp up their national defense budgets in 2014 when Russia illegally annexed Ukraine's Crimean Peninsula. After Russia's full-scale invasion of Ukraine in 2022, the NATO allies agreed to make 2% of GDP the minimum spending level. Last year, 22 countries were expected to hit that target, up from only three a decade ago. In The Hague, the allies were expected to up the ante to 3.5%, plus a further 1.5% for things like improving roads, bridges, ports and airfields or preparing societies to deal with future conflicts. Whether they will now remains an open question.
