Oil prices tumble after Israel agrees to Iran ceasefire
Agencies
New York
Oil prices tumbled by nearly 5 percent on Tuesday after Israel agreed to a ceasefire with Iran after nearly two weeks of conflict. Brent crude, the international benchmark for oil prices, initially fell to $68 a barrel though it then recovered some ground after Iran and Israel accused each other of violating the ceasefire within hours.
Prices had spiked in recent days as concerns grew that Tehran could disrupt global supplies by blockading the Strait of Hormuz, a key shipping route for oil and gas.
Stock markets in the US, the UK and Europe rose and held steady after US President Donald Trump told Israel on social media not to drop bombs after it accused Iran of breaching the ceasefire.
Just hours earlier, Trump had declared the ceasefire was 'now in effect', after which Israel confirmed that it had agreed to the move.
Oil prices have soared to as much as $81 a barrel since the missile strikes began, stoking fears that the cost of living could increase as petrol, diesel and business expenses grew.
Crude is currently trading at $69.67, just below the level it was at when Israel launched missiles against Iran's nuclear sites on 13 June.
'If the ceasefire is followed as announced, investors might expect the return to normalcy in oil,' said Priyanka Sachdeva, senior market analyst atPhillip Nova.
But she added that 'the extent to which Israel and Iran adhere to the recently announced ceasefire conditions will play a significant role in determining oil prices'.
The fall in prices narrowed as Israel claimed that Iran had violated the ceasefire after accusing Tehran of launching a missile strike. Stock markets in the US opened higher. The S&P 500 and the Dow Jones Industrial Average were ahead nearly 0.9 percent while the Nasdaq rose by more than 1 percent.
See also page 9
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Jazeera
3 hours ago
- Al Jazeera
The Take: Will Trump's Israel-Iran ceasefire really hold?
After bombing Iran, United States President Donald Trump tried to turn down the temperature in the Middle East with a ceasefire declaration on Truth Social. The all-caps announcement fell flat as Israel continued striking Iran. How long can a truce hold when each side insists the other broke it first? In this episode: Alex Gatopoulos, (@AlexGatopoulos), Al Jazeera English defence editor Episode credits: This episode was produced by Amy Walters, Sonia Bhagat and Haleema Shah, with Phillip Lanos, Spencer Cline, Melanie Marich, Mariana Navarrete and our host, Manny Rapalo. It was edited by Kylene Kiang and Noor Wazwaz. Our sound designer is Alex Roldan. Our video editor is Hisham Abu Salah. Alexandra Locke is The Take's executive producer. Ney Alvarez is Al Jazeera's head of audio. Connect with us: @AJEPodcasts on Twitter, Instagram, Facebook, Threads and YouTube
Qatar Tribune
4 hours ago
- Qatar Tribune
S&P 500, Nasdaq near record high on Israel-Iran ceasefire
Agencies New York Wall Street's S&P 500 neared a record high on Tuesday as President Donald Trump announced an Israel-Iran ceasefire and Federal Reserve Chair Jerome Powell reiterated interest-rate cuts can wait till the impact of tariffs becomes clearer. The benchmark S&P 500 index and the Nasdaq were about 1.1 percent and 1.5 percent below their all-time highs, respectively. At 12:50 p.m. ET, the Dow Jones rose 502.90 points or 1.18 percent to 43,084.68, the S&P 500 gained 66.67 points or 1.11 percent to 6,091.86, and the Nasdaq advanced 288.71 points or 1.47 percent to 19,919.68. Financial and technology stocks led the rally among S&P 500 sub-sectors, while energy stocks declined the most, tracking an over 5 percent drop in crude prices after Trump's ceasefire announcement eased the threat of Gulf oil supply disruptions. Airline stocks rose, with American Airlines up 4 percent and Alaska Air Group gaining 3.6 percent. Defense stocks Lockheed Martin and RTX Corp fell 2.6 percent and 3.2 percent. Global markets also rallied after Trump called for a halt to hostilities in the Middle East, a sharp turnaround following the US bombing of Iranian nuclear sites over the weekend and Iran's retaliation by firing missiles at a US base in Qatar. Hours after the ceasefire commenced, Israel acknowledged striking a radar installation near Tehran in retaliation for Iranian missile launches, but said it had refrained from further attacks beyond that after Trump spoke with Prime Minister Benjamin Netanyahu. 'I think that (ceasefire) gives the market relief, gives it some confidence, and hope that this conflict or this war is not going to be spreading,' said Robert Pavlik, senior portfolio manager at Dakota Wealth. Investors also assessed Fed Chair Powell's comments on monetary policy during a congressional testimony, as he emphasized the central bank's wait-and-watch approach to interest rates as tariff-driven price pressures become evident. Powell has been on the receiving end of Trump's criticisms for not cutting interest rates, with the President hinting at firing the top Fed policymaker or naming a successor soon. Atlanta Fed President Raphael Bostic told Reuters the central bank doesn't need to cut interest rates soon, as companies plan to raise prices due to higher import taxes and the job market is still strong. The remarks were mirrored by Cleveland Fed President Beth Hammack, who dismissed the need for immediate rate cuts, citing uncertainty about the impact of trade tariffs on inflation, which remains above the central bank's target. Market participants are pricing in at least two 25-basis-point rate reductions before year-end, with the first cut seen in September. Several central bank officials, including Fed Board Governor Michael Barr and Fed Minneapolis President Neel Kashkari, are also scheduled to speak later in the day. US consumer confidence unexpectedly deteriorated in June amid worries about business conditions and employment prospects over the next six months. Among megacap stocks, Tesla shares lost 1.4 percent. Package delivery firm FedEx edged up 1.1 percent ahead of its quarterly results due after the closing bell. Broadcom hit a record high, up 3.8 percent, after HSBC raised the semiconductor manufacturer to 'buy' from 'hold'. Advancing issues outnumbered decliners by a 2.86-to-1 ratio on the NYSE and by a 2.9-to-1 ratio on the Nasdaq. The S&P 500 posted 18 new 52-week highs and no new lows while the Nasdaq Composite recorded 95 new highs and 44 new lows.
Al Jazeera
4 hours ago
- Al Jazeera
LIVE: Israel-Iran truce holds; US ‘did not destroy' Iranian nuclear sites
The ceasefire between Israel and Iran, announced by US President Donald Trump, appears to be holding, despite an Iranian missile attack and an Israeli assault on Tehran after the truce came into effect. White House refutes media reports that say US bombings of Iran's nuclear sites did not completely destroy the facilities and only set the programme back by a few months.
