European shares rebound as worries of US involvement in Middle East ease
European shares rebounded on Friday after three sessions of declines, as a stall in the United States' involvement in the Middle East conflict came as a relief to worried investors.
The pan-European STOXX 600 was up 0.4% at 537.98 points at 0708 GMT. The benchmark is on track to log weekly declines for a second week.
Israel and Iran's air war entered a second week and European officials sought to draw Tehran back to the negotiating table after President Donald Trump said any decision on potential U.S. involvement would be made within two weeks.
The news improved market mood and helped recover some interest in risk assets that were being sold off during the week on uncertainty around how long the conflict would go on.
In the market, travel and leisure stocks gained the most, up 1.1%, as oil prices eased.
Conversely, energy shares were at the bottom of the index with a 0.7% decline, trimming some gains from this week.
Among stocks, London's Berkeley was the biggest percentage decliner, down 8%. The homebuilder named current finance chief Richard Stern as its new CEO, but reported an annual pre-tax profit slightly ahead of market expectations.
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Middle East Eye
3 hours ago
- Middle East Eye
Maersk temporarily halts operations at Israel's Haifa port after Iran strikes
Danish shipping and logistics behemoth Maersk has temporarily halted operations at Israel's Haifa port, amid the country's escalating conflict with Iran. In a statement released on Friday, Maersk said it decided to suspend operations after 'careful analysis of threat risk reports in the context of the ongoing conflict between Israel and Iran, specifically regarding the potential risks of calling Israeli ports and the ensuing implications for the safety of our vessel crews'. Maersk said it was in close contact with customers "impacted by this decision and are working to provide alternative transport solutions to minimise disruption". The company said it was continuing to operate at Ashdod and that it had not experienced any other issues in its other operations in the region. Israel and Iran have been locked in conflict since Israel launched unprovoked air strikes against Iran on 13 June, in what is widely being seen as an attempt to derail an Iranian nuclear deal with the US and exercise regime change in Tehran. More than 639 people have been killed in Iran, with Israel hitting residential areas and hospitals, along with strikes on military sites. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters In Israel, the cities of Tel Aviv and Haifa have also incurred heavy damage following Iran's retaliatory missile strikes. Escalating tensions Mearsk has been under pressure from pro-Palestine activists to suspend all business ties with Israel, given its role in transporting weapons from the US to Israel for the war effort in Gaza. More than 55,000 Palestinians have been killed as a result of Israel's war on Gaza, which several countries, as well as many international rights groups and experts, now qualify as an act of genocide. Despite the efforts to push for Maersk to stop being involved in what critics call the "supply chain of death", the company has refused to halt operations with Israel. Maersk's decision to halt operations in Haifa came days after Bazan, Israel's largest oil refinery, stopped work in Haifa after it was hit by an Iranian-fired ballistic missile. Three workers were killed in the strike. Following escalating tensions, Maersk issued a statement on Monday, advising teams to work remotely as a precautionary measure. Haifa Port, Gautam Adani and Israel's plan for the Middle East Read More » However, Adani Ports and Special Economic Zone Ltd, which has a majority stake in Haifa Port, said operations were still moving smoothly despite the missile strike at the nearby oil refinery. Shrapnel from the missile strike was reportedly found at the port. Adani's purchase of the Haifa Port in 2023 is seen as integral to transforming it into a major international port, as part of the India-Middle East-Europe Economic Corridor (IMEC). IMEC aims to build a new trade passage from India to Europe, via the United Arab Emirates, Saudi Arabia, Jordan and Israel as a counter to China's Belt and Road Initiative. Haifa Port handles about 20 million tons of cargo annually, which makes it among the busiest ports in Israel. Adani Ports did not immediately reply to Middle East Eye's request for comment.
The National
4 hours ago
- The National
Has Europe given Iran an impossible nuclear ultimatum?
European negotiators have insisted Iran must accept that it cannot enrich uranium as part of its nuclear programme, so that peace can return to the Middle East, experts told The National. It is understood that Iran has been agreeable to limiting enrichment to 3.67 per cent, which is the standard level required for civilian nuclear reactors and was part of the previous nuclear agreement. But even this amount is unacceptable to the three European countries, Britain, France and Germany, currently holding talks with Iran in Geneva. 'The Europeans have now started insisting on zero as well, which the Iranians have said is going to be a non-starter,' said Darya Dolzikova, an expert on nuclear proliferation at the Rusi think tank. Iran has engaged in years of brinkmanship by defying international inspectors to enrich uranium to near weapons-grade level. Until the Israeli attacks of the last week, the threat of an assault on its installations seemed to have 'lacked some credibility for the Iranians'. In recent days the regime has appeared to accept the 3.67 per cent figure as a negotiating position, the same amount agreed under the 2015 JCPOA nuclear agreement. For any deal to last it will have to be signed off by US President Donald Trump who has also insisted on zero enrichment, said Richard Pater, director of Bicom, the Anglo-Israeli think tank. 'It all depends on whether 3.67 is acceptable to Trump or whether he's insisting on no enrichment whatsoever,' he said. 'But it's also this question of whether Trump will accept that [3.67 per cent] to get the big peace deal that he wants. Israel will then have no choice but to acquiesce to the American position.' Ms Dolzikova also argued that the Iranians would not agree to a deal that 'doesn't involve the United States as they are the critical players'. But Israel itself has insisted that it will not back down until Iran completely ends its nuclear programme and has made clear that any uranium enrichment on Iranian soil is something that it will not accept. Hasan Al Hasan, a nuclear expert at the International Institute for Strategic Studies, suggested that the 3.67 per cent figure was now redundant as 'there is no indication that Israel is in a mood to negotiate'. Having achieved near total freedom of action in the skies, Israel was likely to 'press ahead with its maximalist war objectives of eliminating Iran's nuclear and missile programmes and perhaps even regime change'. He added that Mr Trump's announcement that he would make no decision on joining the attacks - that would benefit from America's massive bunker-busting bombs - for the next two weeks was a signal for Israel to 'get the job done' in that period. But there is also a question whether within that fortnight window Israel, without US bombs, has the capability to destroy Iran's nuclear facilities. 'Israel is obviously probably more bullish right now and looking for the removal of the whole nuclear project in its entirety, but it remains to be seen whether that's in their gift,' said Ms Dolzikova. There is also a fear that if 3.67 per cent is agreed by Iran then it might in secret enrich uranium, and conduct a nuclear weaponisation programme viewing it as the only effective deterrent. 'If the regime survives this, then 3.67 per cent gives them another basis with which to start again,' said Mr Pater. 'Israel is under no illusion the Iranians given the chance, will do it all over again.'
The National
5 hours ago
- The National
Shipping unhindered in Strait of Hormuz despite Israel-Iran war risks
Ships are continuing to travel through the Strait of Hormuz, but leading companies say they are closely monitoring the Israel-Iran conflict, and safety is a priority. 'So far, our operations across the region continue without interruption,' a spokesperson for German shipping company Hapag-Lloyd told The National in a statement. The company added that it is closely monitoring the 'geopolitical developments' in the Middle East and the 'safety of our seafarers and vessels as well as the cargo of our customers' are its priority. Ships carry about 20 million barrels of crude and refined products daily through the key waterway between Iran and Oman to various destinations from Gulf producers and from Iran and Iraq. This week, two ships collided in the Sea of Oman near the Strait of Hormuz after a 'navigational misjudgment' by one of the vessels. The UAE Energy Ministry did not blame the accident on the current conflict but it highlighted the risk of navigating through the water channel as it continues. Closing down the waterway is one option Iran could take to respond to its enemies, said Behnam Saeedi, a member of the Iranian parliament's national security committee. Shipping major Maersk said it will continue to use the Strait of Hormuz but will pause calling at the Israeli port of Haifa following Iran's bombardment of the coastal city this week. 'We will continue to closely monitor the situation and will be ready to reassess this as soon as feasible," Maersk said. The conflict began on June 13 when Israel launched a wave of strikes across Iran, killing senior military officials and hitting key nuclear sites. Iran launched retaliatory missile strikes on Israel, hitting a number of targets. The conflict is continuing with both countries hitting each others targets. Some LNG vessels en route to Qatar to load are holding back near Oman, maritime Research Consultancy Drewry Shipping said. Dry bulk imports of grain and agri-products, including soya beans and sugar, to Iran are also stalled at the moment, Rahul Sharan, deputy director of bulk research at Drewry told The National. 'Similarly, Iran's exports of iron ore, cement and clinkers, steel products and urea are also stalled,' he said. About 20 per cent of the world's oil consumption passes through the Strait of Hormuz, which is the only entry point to the Arabian Gulf. Impact on oil and trade Energy companies have also expressed concern about the war's impact on trade and oil shipments. A blockage of the Strait of Hormuz could deliver a substantial shock to global trade, Shell chief executive Wael Sawan said at the Japan Energy Summit and Exhibition in Tokyo on Thursday. 'If that artery is blocked, for whatever reason, it has a huge impact on global trade,' Bloomberg reported quoting Mr Sawan as saying. 'We have plans in the eventuality that things deteriorate.' Oil prices are trading higher on supply related concerns. Prices surged as much as 13 per cent on the first day of the conflict and analysts are expecting oil to touch $150 per barrel if the Strait of Hormuz is shut. 'What is particularly challenging right now is some of the jamming that's happening,' said Mr Sawan, referring to the interference with navigation signals in and around the Arabian Gulf. Shell is 'being very careful' with shipping in the Middle East due to the conflict, he said. Rising shipping costs Another impact of the war has been on shipping costs, which have gone up for vessels travelling through the region, including through rising insurance premiums, according to analysts and insurers. 'The price to charter a very large crude carrier from the Gulf to China reportedly more than doubled from about $20,000 a day a week ago to about $47,600 on Wednesday,' Philip Damas, managing director and head of Drewry Supply Chain, said. Insurance rates have also gone up for cargo vessels sailing in the Red Sea, Arabian Gulf and travelling to or from Israeli ports, according to Marcus Baker, global head of marine and cargo at Marsh McLennan. 'All quotes are now valid for 24 hours from most leaders, as opposed to 48 hours previously,' Mr Baker said. There is also a slight rise in war risk insurance rates for the Red Sea and Arabian Gulf and ports in Israel, he added. 'We are now seeing a modest drop in the number of ships sailing through the area,' Jakob Larsen, chief safety and security officer at Bimco shipping association, told The National. He added that US authorities reported no indications of a threat from Iran towards commercial ships other than those with links to Israel. However, Iran might expand their threats "to also take aim at ships without links to Israel,' if the tension mounts, he added. 'Iranian forces are highly skilled in asymmetric warfare and have prepared for decades for a scenario involving attacks against shipping through the Strait of Hormuz and adjacent waters,' he said. Last year, Iran's Revolutionary Guard seized a container ship with links to Israel in the strait.
