Oil prices drop, stocks climb as Iran-Israel war fears ease
16 June 2025 20:33
LONDON (AFP)Stocks rose and oil prices retreated Monday as fears of a wider Middle East conflict eased even as Israel and Iran pounded each other with missiles for a fourth day.The dollar dipped against the euro and pound, while safe-haven gold declined slightly."As things stand, investors seem less fearful than they were going into the weekend of the possibility that the war between Israel and Iran spreads across the Middle East, and beyond," said David Morrison, senior market analyst at financial services provider Trade Nation."It appears that most of the Israeli airstrikes and missile launches avoided the most significant parts of Iran's energy infrastructure. And so far Iran's retaliation has done relatively little damage," he added.Wall Street's main stock indices pushed higher, with the tech-heavy Nasdaq up around 1.5 percent in late morning deals.In Europe, London, Paris and Frankfurt all closed the day with gains.They tracked gains in Asia, where Tokyo closed up 1.3 percent, boosted by a weaker yen, while Hong Kong and Shanghai also advanced.Israel's surprise strike against Iranian military and nuclear sites on Friday -- killing top commanders and scientists -- sent crude prices soaring as much as 13 percent at one point on fears about supplies from the region.However, concerns over the conflict spreading appeared to have receded, with both main oil contracts retreating 3.7 percent on Monday.Analysts said the recent decision by the OPEC+ group of crude producing nations to raise output again in July also played a role."There may need to be a major escalation in the conflict before we get another sharp upswing in oil and gold prices," said Kathleen Brooks, research director at trading group XTB.Investors were gearing up for monetary policy decisions this week from the US Federal Reserve, Bank of England and Bank of Japan.All are expected to stand pat but traders will be keeping a close watch on their statements for clues on interest-rate outlooks, with US officials under pressure from President Donald Trump to cut borrowing costs.Also in focus is the G7 summit in the Canadian Rockies, which kicked off Sunday, where the Middle East crisis will be discussed along with trade after Trump's tariff blitz.In corporate news, shares in Nippon Steel rose more than three percent in Tokyo after Trump on Friday signed an executive order approving its $14.9 billion merger with US Steel, bringing an end to the long-running saga.Shares in Gucci owner Kering climbed almost 12 percent in Paris on reports that the outgoing boss of French automaker Renault would take over as chief executive of the struggling luxury group.Kering announced the appointment after European markets closed.
Renault shares slumped 8.7 percent, following its announcement on Sunday that Luca de Meo would step down in July.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
3 hours ago
- Al Etihad
Trump family in phone service licensing deal, touts a $499 device
16 June 2025 23:36 NEW YORK (REUTERS)US President Donald Trump's family business licensed its name to launch a US mobile service and a $499 smartphone on Monday, calling it Trump Mobile, in the latest deal brokered by the president's children to capitalise on his last name while he is in new mobile venture, announced at Trump Tower in Manhattan, will operate using the networks of the three major US wireless carriers."We are going to be introducing an entire package of products where people can come and they can get telemedicine on their phones for one flat monthly fee, roadside assistance on their cars, unlimited texting to 100 countries around the world," said the president's eldest son, Donald Trump announcement also promoted the launch of a "sleek, gold smartphone" that will be "designed and built in the United States."It was not known which US-based company could deliver a phone at $499, a feat that has eluded the world's largest phone makers, including Apple. Despite the strength of US-based tech brands, there is no significant domestic smartphone production infrastructure, largely due to high labour costs, supply chain complexity, and reliance on overseas component president has said he put his business interests in a trust managed by his children to avoid conflicts of interest, but income from such business ventures will eventually reach the president, who sits atop the series of Trump family the president's financial disclosure released on Friday, he reported more than $600 million in income from licensing deals, crypto projects, golf clubs and other ventures. Those numbers appeared to be through the end of 2024, before he was inaugurated for his second term as president. Since then, the Trump family's crypto projects alone have brought in hundreds of millions of to the Trump Mobile website, the Trump Organization is not involved in designing the smartphone, manufacturing it, providing or selling the cellular U.S. mobile network market is dominated by three national carriers: Verizon, AT&T, and T-Mobile, which together control over 95% of the wireless market. But mobile virtual network operators (MVNOs), which buy network capacity from the major US carriers, are becoming increasingly popular for targeting niche can be difficult for such ventures to make money, an analyst said."MVNOs account for barely 3-4% of U.S. wireless subscriptions and customer churn tends to be high," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors. "Unless Trump Mobile cracks the million-subscriber mark - well above most celebrity MVNOs - the financial impact is de minimis."A website that went live after the announcement said the new Trump-branded smartphone will be available from new network will be available for a subscription price of $47.45 per month, a reference to Trump, who was the 45th President in his previous term and is now serving as the 47th President.
Middle East Eye
3 hours ago
- Middle East Eye
France shuts Israeli weapons booths at Paris air show
French authorities sealed off Israeli weapons industry booths at the Paris air show on Monday amid wars in Tehran and Gaza, a move that Israel condemned as "outrageous", AFP reported on Monday. Black walls were installed around the stands of five Israeli defence firms at the trade fair in Le Bourget, an air field on the outskirts of Paris. The booths displayed "offensive weapons" that could be used in Gaza - in violation of agreements with Israeli authorities, a French government source told AFP. The companies - Israel Aerospace Industries, Rafael, Uvision, Elbit and Aeronautics - make drones, guided bombs and missiles. An Israeli exhibitor wrote a message in yellow chalk on one of the walls, saying the hidden defence systems "are protecting the state of Israel these days. The French government, in the name of discrimination, is trying to hide them from you!" French Prime Minister Francois Bayrou defended the decision during a press conference at the air show. "The French government's position was very simple: no offensive weapons at the arms exposition," he said. "Defensive weapons were perfectly acceptable." Bayrou cited the "extremely serious" situation in Gaza as the rationale behind the ban. "Given the situation in Gaza... which is extremely serious from a humanitarian and security point of view, France was keen to make it clear that offensive weapons should not be present at this exposition," Bayrou said. Israeli President Isaac Herzog said he was shocked by the "outrageous" closure of the pavilions, saying the situation should be "immediately corrected". "Israeli companies have signed contracts with the organisers... it's like creating an Israeli ghetto," he said on French television channel LCI. The Israeli defence ministry said in a statement that the "outrageous and unprecedented decision reeks of policy-driven and commercial considerations". "The French are hiding behind supposedly political considerations to exclude Israeli offensive weapons from an international exhibition - weapons that compete with French industries," it said. "This is particularly striking given Israeli technologies' impressive and precise performance in Iran." The presence of Israeli firms at Le Bourget, though smaller than in the past, was already a source of tension before the start of the Paris air show, because of the war in Gaza. A French court last week rejected a bid by non-governmental organisations to ban Israeli companies from Le Bourget over concerns about "international crimes". Local lawmakers from the Seine-Saint-Denis department hosting the event were absent during Bayrou's visit to the opening of the air show in protest against the Israeli presence. "Never has the world been so disrupted and destabilised," Bayrou said earlier at a roundtable event, urging nations to tackle challenges "together, not against each other". Amir Baram, a general in the Israeli defence ministry, called the French decision "anti-Semitic", adding Israel would challenge the move in French courts. The show's organisers said "dialogue" was underway to find a favourable resolution.
Gulf Today
4 hours ago
- Gulf Today
G7 leaders agree on strategy to protect critical mineral supply
Group of Seven leaders on Monday provisionally agreed on a strategy to help protect the supply of critical minerals and bolster their economies, according to a draft statement seen by Reuters. The draft, which a source said had not yet been approved by U.S. President Donald Trump, also said minerals markets should reflect the real costs of responsible extraction, processing, and trade of critical minerals. China's decision in April to suspend exports of a wide range of critical minerals and magnets disrupted supplies needed by automakers, computer chip manufacturers and military contractors around the world. Trump last week said Chinese President Xi Jinping agreed to let rare earth minerals and magnets flow to the United States. Rare earths and other critical minerals, though, remain a source of leverage for Beijing. 'Non-market policies and practices in the critical minerals sector threaten our ability to acquire many critical minerals,' the draft said. 'Recognizing this threat to our economies, as well as various other risks to the resilience of our critical minerals supply chains, we will work together and with partners beyond the G7 to swiftly protect our economic and national security.' This included anticipating critical minerals shortages, coordinating responses to deliberate market disruption, and diversifying mining, processing, manufacturing, and recycling, it said. US President Donald Trump on Monday said that it was a mistake to throw Russia out of the G8 and that he wouldn't mind China joining the G7, in comments he made while attending the Group of Seven summit in Canada. Britain and the United States should finalise 'very soon' the implementation of a trade deal agreed last month, Prime Minister Keir Starmer said on Monday ahead of a meeting with US President Donald Trump in Canada. 'I'm certainly seeing President Trump today, and I'm going to discuss with him our trade deal,' Starmer told reporters on the sidelines of a Group of Seven (G7) meeting. 'I'm very pleased that we made that trade deal, and we're in the final stages now of implementation, and I expect that to be completed very soon.' Britain was the first country to agree a deal for lower tariffs from Trump, with the U.S. reducing tariffs on imports of UK cars , aluminium and steel, and Britain agreeing to lower tariffs on U.S. beef and ethanol. But implementation of the deal has been delayed while details were finalised. On steel and aluminium, the US agreed to lower the 25% tariffs on imports from Britain to zero, subject to setting a quota for British steel imports that must meet supply chain requirements. Britain had avoided tariffs of up to 50% on steel and aluminium that the U.S. imposed on other countries earlier this month, but could face elevated tariffs from July 9 unless a deal to implement the tariff reduction is reached. British Prime Minister Keir Starmer said Monday he believed Group of Seven leaders meeting in Canada were united in wanting de-escalation between Israel and Iran. 'I do think there's a consensus for de-escalation,' Starmer told reporters at the summit in the Canadian Rockies. 'Obviously, what we need to do today is to bring that together and to be clear about how it is to be brought about,' he said. 'But the risk of the conflict escalating is obvious, I think, and the implications -- not just for the region but globally -- are really immense, so the focus has to be on de-escalation,' he said. Starmer said he spoke with most G7 leaders after they arrived Sunday and had spoken by telephone to Israeli Prime Minister Benjamin Netanyahu. Separately, Starmer said he hoped in a meeting in Kananaskis with US President Donald Trump to finalize implementation of a trade deal between the two allies. British Prime Minister Keir Starmer said Monday he believed Group of Seven leaders meeting in Canada were united in wanting de-escalation between Israel and Iran. 'I do think there's a consensus for de-escalation,' Starmer told reporters at the summit in the Canadian Rockies. British Prime Minister Keir Starmer said on Monday he believed there was a consensus at the Group of Seven (G7) summit in Canada on the need for de-escalation in the Israel-Iran conflict. 'I do think there's a consensus for de-escalation. Obviously, what we need to do today is to bring that together and to be clear about how it is to be brought about,' Starmer told reporters. The draft, which a source said had not yet been approved by U.S. President Donald Trump, also said minerals markets should reflect the real costs of responsible extraction, processing, and trade of critical minerals. Leaders also emphasized the importance of building strategic reserves of key critical minerals to cushion against future supply shocks. By pooling resources and aligning national stockpile strategies, the G7 aims to create a buffer that ensures stability in vital industries, from clean energy to defense, during times of global disruption or geopolitical tension. Agencies
