Stocks rally and oil slumps as Israel agrees to ceasefire with Iran
Stocks gained while oil prices slipped after US President Donald Trump announced that Israel and Iran had agreed to a ceasefire.
Brent, the benchmark for about a third of global crude, fell 2.87 per cent to $69.53 a barrel at 9.05am UAE time. The slide comes after it closed 7 per cent lower on Monday following Iran's attack on a US airbase in Qatar, a more restrained response than previously feared in retaliation against US strikes on its nuclear sites.
West Texas Intermediate, the gauge for US crude, fell about 3 per cent to $66.62 a barrel after losing more than 8 per cent in Monday's trading.
'Crude futures were continuing to weaken early Tuesday … after US President Donald Trump said in a social media post late-Monday that Israel and Iran had agreed to a complete and total ceasefire,' Singapore-based consultancy Vanda Insights said on Tuesday.
Although Mr Trump said an official end to the 12-day war would soon follow, 'crude's decline was cautious', it added.
The Israeli government agreed to the ceasefire on Tuesday after 'achieving the objectives' of its attacks on Iran.
A statement from the office of Prime Minister Benjamin Netanyahu said Israel has now 'removed a dual immediate existential threat – both in the nuclear and ballistic missile fields'.
Iran had said earlier that it would agree to stop attacking Israel only if it did the same. Iran's Foreign Minister Abbas Araghchi posted on X: 'As Iran has repeatedly made clear: Israel launched war on Iran, not the other way around.'
The war has threatened to disrupt energy supplies from the region and stoked fears of Iran closing the Strait of Hormuz, a vital water way for global crude flows.
The conflict has rattled global equities markets as well, adding to the already heightened volatility due to tariff concerns.
Stocks rally
Shares in Asia advanced on Tuesday, with Japan's Nikkei index gaining 1.16 per cent and China's Hang Seng rising 2.03 per cent. Stocks in Mumbai also gained 0.8 per cent, on hopes the conflict will soon come to an end.
Futures of S&P and Nasdaq also advanced 0.6 per cent and 0.83 per cent respectively, while those of the FTSE 100 gained 0.39 per cent, indicating a positive start for the US and European equities.
S&P 500 on Monday closed 0.96 per cent higher, the Nasdaq Composite Index rose 0.94 per cent and the Dow Jones Industrial Average Index ended 0.89 per cent higher.
While the conflict in the Middle East is dominating headlines, sell-offs caused by geopolitical events tend to be brief, Bloomberg cited Morgan Stanley's strategists led by Michael Wilson as saying in a note.
According to the Morgan Stanley team, prior geopolitical risk events have led to some volatility for equities in the short term, but one, three and 12 months after the events, the S&P 500 has been up 2 per cent, 3 per cent, and 9 per cent, on average, respectively.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Business
39 minutes ago
- Gulf Business
Majid Al Futtaim names Fadel Abdulbaqi Al Ali as chairman of holding board
Image: Supplied The company confirmed the leadership transition on Tuesday, noting that Sir Michael Rake's tenure, which began in 2009, concludes after nearly two decades of association with the group. 'I am honoured by my appointment to Majid Al Futtaim's Board of Directors and welcome the privilege and responsibility of guiding one of the UAE's most beloved institutions as it embarks on its fourth decade of growth and prosperity,' said Al Ali in a statement. Majid Al Futtaim: New chairman praises Sir Michael's legacy Al Ali expressed gratitude to the company's management, board, and shareholders, and acknowledged Sir Michael's legacy. 'Sir Michael Rake… led through important moments and key transitions, while carving a path forward for the group. His stewardship has left an indelible mark on Majid Al Futtaim,' he added. Al Ali brings extensive experience in corporate governance and strategic leadership. His past roles include deputy CEO and group chief of operations at First Abu Dhabi Bank, and CEO of Dubai Holding. He currently serves as chairman of the Dubai Financial Services Authority, vice chairman of the board of Wio Bank, and a board member at the Commercial International Bank of Egypt. The appointment comes as Majid Al Futtaim enters its fourth decade, building on a diversified portfolio that includes malls, residential communities, retail partnerships such as Carrefour, and leisure ventures like Ski Dubai. New board named by judicial committee Previously, Dubai's government-appointed special judicial committee, led by DIFC governor Essa Kazim, had announced a nine-member board for the group. The judicial committee was set up in 2022 — under the directive of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai — to weigh in on potential legal disputes over the estate of the founder and billionaire Majid Al Futtaim, who died in Concurrently, the company was converted from a limited liability company into a public joint stock company. With owned assets valued at $19bn, Majid Al Futtaim Group employs more than 43,000 people and serves 600 million customers across its physical and digital ecosystem each year.
Arabian Business
40 minutes ago
- Arabian Business
Burjeel Holdings acquires the Medeor Hospital building in Bur Dubai
Healthcare provider Burjeel Holdings has acquired the Medeor 24×7 Hospital building, located near BurJuman Centre in Bur Dubai for AED170 million ($46.3 million). The Medeor 24×7 Hospital served as a trusted community healthcare provider in Bur Dubai for over a decade. Prior to the acquisition, it was operated under a long-term lease agreement, the company said in a statement. The remaining fixed rental commitment was of approximately AED343 million ($93.4 million) over the next 15 years. The strategic transaction eliminates that significant liability and replaces it with asset ownership in a high-performing and strategically located facility. Burjeel Holdings acquires Medeor Hospital building The hospital's infrastructure is already optimised for efficient healthcare delivery and supports potential upgrades such as day surgeries and specialty clinics. By securing full control of the hospital, Burjeel Holdings will ensure uninterrupted operations and avoid the risks and costs associated with relocation. It also enhances operational flexibility, allowing for future expansion, reconfiguration, and diversification of services without the landlord's restrictions. This acquisition aligns with Burjeel's long-term strategy to enhance operational control, reduce fixed lease liabilities, and reinforce its asset base in strategic locations. The hospital's location and strong patient volumes align with Burjeel Holdings' regional growth objectives, as it prioritises an increased presence across Dubai and the Northern Emirates, regions with strong demographic demand and high potential for scalable service delivery. John Sunil, CEO of Burjeel Holdings, commented: 'This acquisition reflects our disciplined capital strategy and commitment to long-term value creation. By transitioning from leasehold to ownership in a key market, we reinforce our operational resilience and strengthen our platform for growth. 'Dubai, along with the Northern Emirates, remains a central focus of our expansion strategy, and securing full control of this asset enables us to deepen our presence and better serve these high-demand markets.' Established in 2015, Medeor 24×7 Hospital is a multi-specialty hospital, offering a wide range of services, including mother and childcare, congenital malformation surgeries of the brain and spine, cardiology and various speciality surgeries. The hospital also houses a College of American Pathologists-accredited laboratory.
Arabian Business
41 minutes ago
- Arabian Business
Middle East Gen Z and Millennials want purpose, mental well-being and financial security over corporate titles and promotions
Young people in the Middle East now prioritise financial security, mental well-being, and personal purpose over traditional career ambitions like corporate promotions or executive titles, according to a new report from Deloitte Global. The 14th edition of Deloitte's Gen Z and Millennial Survey is based on responses from more than 23,000 participants across 44 countries and includes detailed insights from the Middle East — one of the world's youngest regions by demographic. More than 60 per cent of the region's population is under 30, with two-thirds of Saudi nationals and nearly half of the UAE population falling into this category. Key findings for the Middle East workforce Money, meaning, and well-being are the top three career drivers for Gen Zs and millennials 48 per cent of Gen Zs and 46 per cent of millennials say they do not feel financially secure — up from 30 per cent and 32 per cent last year 89 per cent of Gen Zs and 92 per cent of millennials believe a sense of purpose is key to job satisfaction Only 6 per cent of Gen Zs rank senior leadership as their primary career goal Instead, most prefer jobs that offer learning, growth, balance, and positive societal impact Three-quarters of respondents expect Generative AI (GenAI) to reshape their jobs in the next year, and more than 50 per cent already use GenAI in their daily work. Yet, concerns remain: 60 per cent worry that GenAI could eliminate jobs Over 80 per cent say soft skills, such as empathy and leadership, are more important than technical skills for long-term success Young professionals are increasingly questioning the relevance of higher education. Roughly one in four are unsure whether their academic training truly prepares them for the job market. Rana Salhab, People and Purpose Managing Partner at Deloitte Middle East said: 'Gen Zs and millennials are rebalancing priorities at work, amid a dynamic business landscape that is being constantly reshaped by technologies such as AI. 'What we're seeing in the Middle East is a redefinition of ambition, not a lack of it. Younger people want to build careers that are aligned with their aspirations. 'It's a powerful call for more human-centred leadership, one that is thoughtful about the impact of technology and supporting the workforce while advancing organizational goals.' With millions of young people in the region entering or already navigating the workforce, the findings offer critical insights for employers, educators, and policymakers looking to retain and empower the next generation of Middle Eastern talent. Mutasem Dajani, CEO of Deloitte Middle East, said: 'As our region navigates the ongoing economic and social transformation, as well as the disruption caused by emerging technologies, it's imperative for organizations to recognize and adapt to the priorities of our youth. 'On top of financial stability our youth today are expressing a need for a sense of personal purpose, which is essential for their mental well-being and career satisfaction'.
