Oil Stabilises After Surge, Stocks Drop As Mideast Crisis Fuels Jitters
Oil prices stabilised Wednesday after surging the previous day on fears of a US intervention in the Israel-Iran conflict sparked by Donald Trump calling for Tehran's "unconditional surrender".
Iran and Israel exchanged missiles for a sixth day, with the US president's latest comments appearing to dent hopes that the crisis in the Middle East could be calmed.
Leaving the G7 summit in Canada a day early on Monday, Trump said he was aiming for a "real end" to the conflict, not just a ceasefire.
He later shared a series of social media posts that stoked speculation he could be planning to join Israel in its strikes on Iranian military and nuclear sites.
Days after a senior US official said Trump had told Israel to back down from plans to assassinate top leader Ayatollah Ali Khamenei, the US president looked to reverse course.
"We know exactly where the so-called 'Supreme Leader' is hiding. He is an easy target, but is safe there -- We are not going to take him out (kill!), at least not for now," he wrote on his Truth Social platform.
Warning Iran against targeting US interests, he also posted: "But we don't want missiles shot at civilians, or American soldiers. Our patience is wearing thin."
And in a later post wrote: "UNCONDITIONAL SURRENDER!"
The comments sent oil prices spiking more than four percent Tuesday on fears an escalation of the conflict could hammer supplies from the crude-rich region.
But while both main contracts dipped Wednesday, investors remain on edge over any negative developments.
Of particular concern is the possibility of Iran shutting off the Strait of Hormuz, through which around an estimated fifth of global oil supply traverses, according to the Commerzbank note.
"Iran is reportedly ready to target US regional bases should Trump greenlight strikes on Iranian nuclear facilities," said Stephen Innes at SPI Asset Management.
"Washington's refuelling jets are already en route, and if Fordow gets hit, expect the Strait of Hormuz to become a maritime minefield, Houthi drones to swarm Red Sea shipping lanes, and every militia from Basra to Damascus to light up American forward outposts."
Markets Hong Kong, Shanghai, Seoul, Singapore, Sydney, Wellington, Manila and Jakarta all sank, though Tokyo, Seoul and Taipei edged up.
The losses followed a weak day on Wall Street, where a below-forecast reading on US retail sales for May -- dragged by a slowdown in auto sales -- revived fresh worries about the world's top economy. That came as another report showed factory output fell unexpectedly.
Still, they did provide a little hope the Federal Reserve will eventually cut interest rates, with traders betting on two by the end of the year, according to Bloomberg News.
Investors will be keeping track of the bank's latest meeting as it concludes later in the day, with most observers predicting it will stand pat.
However, it is also due to release its rate and economic growth outlook for the rest of the year, which are expected to take account of the impact of Trump's tariff war.
"The Fed would no doubt be cutting again by now if not for the uncertainty regarding tariffs and a recent escalation of tensions in the Middle East," said KPMG senior economist Benjamin Shoesmith.
West Texas Intermediate: FLAT at $74.83 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $76.37 per barrel
Tokyo - Nikkei 225: UP 0.7 percent at 38,791.80 (break)
Hong Kong - Hang Seng Index: DOWN 1.3 percent at 23,680.69
Shanghai - Composite: DOWN 0.4 percent at 3,373.49
Euro/dollar: UP at $1.1498 from $1.1488 on Tuesday
Pound/dollar: UP at $1.3434 from $1.3425
Dollar/yen: DOWN at 145.15 yen from 145.27 yen
New York - Dow: DOWN 0.7 percent at 42,215.80 (close)
London - FTSE 100: DOWN 0.5 percent at 8,834.03 (close)
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DW
3 hours ago
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Where does Donald Trump stand on the Israel-Iran conflict? – DW – 06/17/2025
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On the campaign trail ahead of the 2024 US presidential election, Trump never tired of repeating that he had no desire to allow the United States to get caught up in global military conflicts. In his January 2025 inaugural address, Trump called himself a "peacemaker," pledging to use the might of the US to "stop all wars and bring a new spirit of unity" to the world. Speaking in Saudi Arabia in May, he announced the dawn of a new era of peace in the Middle East. The front page of an Iranian newspaper reporting on recent nuclear negotiations between Washington and Tehran Image: Atta Kenare/AFP/Getty Images What's Trump's stance on Iran? Not much remains of this peaceful attitude in the wake of Israel's full-on assault on Iran. On Monday night, Trump wrote on Truth Social that "everyone should immediately evacuate Tehran." In a previous post, he wrote that he had given Tehran's leaders "chance after chance" to sign a new nuclear deal, warning that if they failed to sign one, Iran would face an attack worse than anything they could imagine. Trump wrote that hardliners who had come out against an agreement "are all dead now," adding, "it will only get worse!" Delegations from both nations have met several times since April, with the aim of negotiating a replacement treaty for the JCPOA (Joint Comprehensive Plan of Action) deal that Trump withdrew the US from in 2018. Trump claims his aim has always been to ensure that Iran can never build a nuclear weapon — which was also the aim of the JCPOA. Beyond military and civilian targets, Israel's attacks also hit Iranian nuclear sites. An attack on Iran's state broadcaster: Tehran appears incapable of protecting critical infrastructure from Israeli assault Image: IRIB Is Israel leading the US into war? So where does Donald Trump actually stand in this conflict between the hardline governments of Prime Minister Benjamin Netanyahu in Israel and Ayatollah Ali Khamenei in Iran? British-Israeli political scientist Daniel Levy, president of the non-profit research institute US/Middle East Project, suggests Israel may have convinced the US that a military attack against Iran could help advance nuclear talks between Washington and Tehran. Levy also told DW it was no coincidence that Israel had chosen this moment to attack. "I think one of the primary motivating factors for Netanyahu was to act now because were there a break-through in the talks, he would probably feel sufficiently constrained by the Americans not to act." In any case, Trump decided not to red light Netanyahu's attack on Iran, wrote Willian F. Wechsler, in a blog post for the US think tank Atlantic Council, where he is director of the Middle East program. There was no specific demand that Israel refrain from attacking, therefore, "we should assume that Israeli leaders would have interpreted the absence of an American red light as a de facto green light," wrote Wechsler. Trump stuck in the middle In May, Trump made headlines by firing his national security advisor, Michael Waltz, who had created headaches for the administration by erroneously adding a well-known journalist to a chat group discussing secret US military plans on the messenger service Signal. But research by the Washington Post newspaper found that something else had in fact led to Waltz's firing: Trump's advisor is said to have had intense discussions with Prime Minister Netanyahu about possible military options for dealing with Iran — and that, prior to Netanyahu's visit to the White House. 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DW
3 hours ago
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Journalist Gilda Sahebi describes 'mixed feelings' in Iran – DW – 06/17/2025
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Int'l Business Times
5 hours ago
- Int'l Business Times
Oil Stabilises After Surge, Stocks Drop As Mideast Crisis Fuels Jitters
Oil prices stabilised Wednesday after surging the previous day on fears of a US intervention in the Israel-Iran conflict sparked by Donald Trump calling for Tehran's "unconditional surrender". Iran and Israel exchanged missiles for a sixth day, with the US president's latest comments appearing to dent hopes that the crisis in the Middle East could be calmed. Leaving the G7 summit in Canada a day early on Monday, Trump said he was aiming for a "real end" to the conflict, not just a ceasefire. He later shared a series of social media posts that stoked speculation he could be planning to join Israel in its strikes on Iranian military and nuclear sites. Days after a senior US official said Trump had told Israel to back down from plans to assassinate top leader Ayatollah Ali Khamenei, the US president looked to reverse course. "We know exactly where the so-called 'Supreme Leader' is hiding. He is an easy target, but is safe there -- We are not going to take him out (kill!), at least not for now," he wrote on his Truth Social platform. Warning Iran against targeting US interests, he also posted: "But we don't want missiles shot at civilians, or American soldiers. Our patience is wearing thin." And in a later post wrote: "UNCONDITIONAL SURRENDER!" The comments sent oil prices spiking more than four percent Tuesday on fears an escalation of the conflict could hammer supplies from the crude-rich region. But while both main contracts dipped Wednesday, investors remain on edge over any negative developments. Of particular concern is the possibility of Iran shutting off the Strait of Hormuz, through which around an estimated fifth of global oil supply traverses, according to the Commerzbank note. "Iran is reportedly ready to target US regional bases should Trump greenlight strikes on Iranian nuclear facilities," said Stephen Innes at SPI Asset Management. "Washington's refuelling jets are already en route, and if Fordow gets hit, expect the Strait of Hormuz to become a maritime minefield, Houthi drones to swarm Red Sea shipping lanes, and every militia from Basra to Damascus to light up American forward outposts." Markets Hong Kong, Shanghai, Seoul, Singapore, Sydney, Wellington, Manila and Jakarta all sank, though Tokyo, Seoul and Taipei edged up. The losses followed a weak day on Wall Street, where a below-forecast reading on US retail sales for May -- dragged by a slowdown in auto sales -- revived fresh worries about the world's top economy. That came as another report showed factory output fell unexpectedly. Still, they did provide a little hope the Federal Reserve will eventually cut interest rates, with traders betting on two by the end of the year, according to Bloomberg News. Investors will be keeping track of the bank's latest meeting as it concludes later in the day, with most observers predicting it will stand pat. However, it is also due to release its rate and economic growth outlook for the rest of the year, which are expected to take account of the impact of Trump's tariff war. "The Fed would no doubt be cutting again by now if not for the uncertainty regarding tariffs and a recent escalation of tensions in the Middle East," said KPMG senior economist Benjamin Shoesmith. West Texas Intermediate: FLAT at $74.83 per barrel Brent North Sea Crude: DOWN 0.1 percent at $76.37 per barrel Tokyo - Nikkei 225: UP 0.7 percent at 38,791.80 (break) Hong Kong - Hang Seng Index: DOWN 1.3 percent at 23,680.69 Shanghai - Composite: DOWN 0.4 percent at 3,373.49 Euro/dollar: UP at $1.1498 from $1.1488 on Tuesday Pound/dollar: UP at $1.3434 from $1.3425 Dollar/yen: DOWN at 145.15 yen from 145.27 yen New York - Dow: DOWN 0.7 percent at 42,215.80 (close) London - FTSE 100: DOWN 0.5 percent at 8,834.03 (close)
