
Israel-Iran Ceasefire Is Put to an Early Test
Get caught up.
'THE CEASEFIRE IS NOW IN EFFECT,' Donald Trump said at around 9:10 a.m. Dubai time on Truth Social. 'PLEASE DO NOT VIOLATE IT!'
But just how lasting any sort of truce can be was called into question almost immediately. Israel has since accused Iran of breaching the ceasefire — which the Islamic Republic denied — and its defense minister instructed the military to 'respond forcefully.' Prime Minister Benjamin Netanyahu acknowledged that Israel had agreed to a truce, but Iran has yet to confirm publicly of its agreement.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNN
31 minutes ago
- CNN
Oil is falling so much it's now cheaper than it was before the Iran-Israel conflict
Oil prices fell sharply Tuesday, returning to levels last seen before the Iran-Israel conflict, as investors cheered news of a ceasefire, albeit fragile, between the two countries. Brent crude, the global oil benchmark, was trading 4.3% lower on the day early Tuesday morning ET at $68.44 a barrel, while West Texas Intermediate crude, the US oil benchmark, was also trading 4.3% down at $65.55 a barrel. These levels are broadly comparable to the closing prices before Israel launched an unprecedented attack on Iranian nuclear facilities on June 13. That assault triggered a 12-day conflict that has led both sides to fire a barrage of missiles into the other's territory, as well as direct military involvement by Israel's biggest ally, the United States. US President Donald Trump announced the ceasefire late Monday ET, though hours later Israel accused Iran of violating the terms and vowed to launch fresh strikes on Tehran. Iran denied the allegations. US stock futures were in the green. The Dow was on track to open 262 points, or 0.6%, higher. S&P 500 futures were 0.7% higher, while futures in the tech-heavy Nasdaq rose 1%. In Asia, stock indexes closed the day higher. Hong Kong's Hang Seng finished up 2% and mainland China's Shanghai Composite was 1.2% higher on the day. Meanwhile, in Europe, the benchmark STOXX Europe 600 index, which includes UK-listed companies, was trading 1.2% up by early morning ET. 'We've seen a pretty remarkable de-escalation of tensions in the Middle East,' analysts at Deutsche Bank wrote in a note Tuesday. 'The past 12 days look set to join the long list of geopolitical shocks that proved temporarily disruptive but had little lasting effect on markets.' However, with Federal Reserve Chair Jerome Powell testifying before Congress Tuesday and tensions still running high, markets could turn on a dime. 'Markets breathed a sigh of relief following Trump's ceasefire declaration, but the celebration could be short-lived,' said Lukman Otunuga, senior market analyst at FXTM, in a note to investors. 'If tensions flare again or the ceasefire is violated, we could see a swift return to risk aversion – boosting safe havens like gold and pressuring global equities.' The ceasefire makes it less likely that global oil supplies will be disrupted. Many investors have been worried that Iran could close the Strait of Hormuz, a critical waterway ferrying around a quarter of the world's oil supply, according to figures from the International Energy Agency. That scenario – which would likely send oil prices skyward – now appears less of a threat. Goldman Sachs has estimated that oil prices could blow past $100 a barrel if there is an 'extended disruption' to the strait. Assuming the ceasefire holds, Brent crude could hover 'near the $70 per barrel level while clarity on a US-Iran deal emerges,' said Mukesh Sahdev, global head of commodity markets at Rystad Energy, a consultancy, Tuesday. 'The prospect of severe economic fallout from a potential blockade (of the strait) likely motivated both sides to agree to the ceasefire, if it is indeed genuine,' he wrote in a note. While oil prices shot up after the Iran-Israel conflict began – touching a five-month high last week – they tanked Monday after Iran launched targeted and limited missile strikes on US bases in Qatar. US crude tumbled 7.2% to settle at $68.51 a barrel, the biggest one-day drop since early April and one of its worst days over the past three years. Brent closed at $71.48 a barrel, down 7.2%, the steepest decline since August 2022 . Matt Egan contributed reporting.


CNBC
33 minutes ago
- CNBC
Israel-Iran conflict is 'far from over' as yet, says Michèle Flournoy
Michèle Flournoy, WestExec Advisors co-founder and managing partner and former Under Secretary of Defense for Policy in the Obama administration, joins 'Squawk Box' to discuss the latest developments in the Israel-Iran conflict, how likely the ceasefire will hold, future of Iran's nuclear capabilities, and more.


CNBC
33 minutes ago
- CNBC
Defense stocks to buy as spending bill moves through Congress; trading small caps
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking for opportunities in the oil and natural gas space. They are also eyeing a tailwind for defense stocks in President Donald Trump's spending bill. Worldwide Exchange Pick: EOG Resources Patrick Fruzzetti of Rose Advisors said EOG Resources is a good buy despite the decline in oil prices. "It's a premium driller with a great balance sheet, good assets they have been in West Texas for a long time, they are expanding in Utica (Ohio)," said Fruzzetti. "With the environment we have been in geopolitically it's always worth having some exposure oil and gas in your portfolio." EOG Resources shares are down more than 1% in 2025. The stock pays a more than 3% dividend. Investing in defense Sheila Kahyaoglu of Jefferies said she is surprised that defense stocks haven't moved higher during the escalation of the Israel-Iran conflicts and U.S. strikes. However she said a new tailwind for the space for legacy players like RTX , Lockheed Martin and Northrop Grumman could come from Congress in the "Big Beautiful Bill," with defense spending proposed to increase by $150 billion, or roughly 13%, year over year. "If (President Trump) gets the $150 billion approved, maybe you could say it's all used in fiscal 2026, and it's clear he wants to be supportive of his 'Golden Dome' project which would literally be half of that $150 billion, $75 billion. A golden dome would be a beneficiary for existing systems because he wants to deploy it in three years," said Kahyaoglu. Two other stocks Kahyaoglu said are getting recent investor attention Israeli defense contractor Elbit Systems and Kratos Defense & Security Solutions . Investing in industrials Keith Lerner of Truist sees more upside in industrials that have been the leading sector year to date. "I think Industrials lead by defense continues to be something that will have a big," Lerner said. He added: "It is also an indirect AI play with things like cooling as an example." Lerner said FedEx earnings could have an impact on sentiment within the sector and advises investing through a diversified ETF rather than trying to find individual winners with the current trade and geopolitical uncertainty. Outlook for small caps Daniel Morris of BNP Paribas sees gains ahead the Russell 2000 . "If you increase your allocation to the S & P 500 you are implicitly betting more on that tech call," Morris said. "The appeal of small caps then becomes that you can increase your exposure to U.S. growth without increasing your exposure to megacap tech. We see it as diversified access to US growth." The Russell 2000 is more than 13% away from it's 52-week high, while the S & P 500 is 2% from a new all-time high.