Oil Prices Jump after Trump's Warning, Stocks Extend Gains
Oil prices rallied Tuesday after Donald Trump urged Tehran residents to evacuate, stoking fresh fears of all-out war as Israel and Iran continued to pound each other with missiles.
Hopes that the deadly conflict can be contained helped most equities rise, while the US president's earlier claim that Iran wanted to make a nuclear deal also provided a little optimism.
After Friday's surge sparked by Israel's attacks on its regional foe, crude ticked more than one percent lower Monday as traders bet that the battle would not spread throughout the Middle East and key oil sites were mostly left untouched, said AFP.
But prices edged back up after Trump took to social media calling for the evacuation of the Iranian capital, which is home to nearly 10 million people.
"Iran should have signed the 'deal' I told them to sign," he said, referring to nuclear talks that were taking place.
"What a shame, and waste of human life. Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!"
Oil prices spiked around two percent Tuesday before paring some of those gains, but the comments kept investors on edge amid warnings that an escalation of the crisis could send the commodity soaring again.
Meanwhile, the aircraft carrier USS Nimitz left Southeast Asia on Monday after cancelling a Vietnam visit, with the Pentagon announcing it was sending "additional capabilities" to the Middle East.
Prime Minister Benjamin Netanyahu insisted Israel's campaign was "changing the face of the Middle East".
Trump has maintained that Washington has "nothing to do" with its ally's campaign, but Iran's foreign minister said Monday that the US leader could halt the attacks with "one phone call".
Traders had been a little more upbeat after the US president -- who is in Canada for the G7 summit -- had said Iran wanted to make a deal, saying "as soon as I leave here, we're going to be doing something".
He later left the gathering in the Rockies, telling reporters: "I have to be back as soon as I can. I wish I could stay for tomorrow, but they understand, this is big stuff."
Tehran had signaled a desire to de-escalate and resume nuclear talks with Washington as the United States did not join conflict, according to the Wall Street Journal.
Stocks mostly rose in Asian trade, with Tokyo, Sydney, Seoul, Singapore and Taipei leading gains, though Shanghai and Hong Kong struggled.
"Risk assets are enjoying a positive start to the new week amid signs the Israel-Iran war remains limited to the two countries without signs of a possible escalation into a wider conflict," said Rodrigo Catril at National Australia Bank.
"Iran is reportedly seeking de-escalation talks, but Israel is not showing signs of slowing down."
The gains followed a positive lead from Wall Street, where traders are keeping tabs on the G7 summit world leaders pushed back against Trump's trade war, arguing it posed a risk to global economic stability.
Leaders from Britain, Canada, Italy, Japan, Germany and France called on the president to reverse course on his plans to impose even steeper tariffs on countries across the globe next month.
Also in view are central bank decisions this week, with the Bank of Japan due to make its latest decision on interest rates later in the day.
Officials are expected to hold interest rates steady but tweak their bond purchase policy.
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Arab News
33 minutes ago
- Arab News
Europe and GCC must lead a Middle East reset
The recent and ongoing Israeli attacks on Iran and Iranian counterattacks are bringing the Middle East once again to the brink of a wider war. While headlines rightly focus on the immediate fallout, including the damage, retaliation and fear of further escalation, including a nuclear dimension, there is a deeper and more urgent truth that policymakers must confront: the cycle of conflict in the Middle East will not end unless serious diplomatic leadership steps in. The crisis, therefore, also offers an opportunity — one where Europe and the Gulf Cooperation Council states, in particular, must step into the current vacuum to take ownership with a new diplomatic initiative that addresses what the region's security environment will look like post-Israel-Iran crisis. The attack by Israel on Iran and the subsequent regional shock waves mark a dangerous turning point in an already fragile region. Iran's long-standing involvement in proxy conflicts across the Arab world — from Lebanon to Syria, Iraq and Yemen — has made it a persistent source of tension with its neighbors. At the same time, the Netanyahu government's uncompromising stance on national security, often at the cost of diplomatic restraint, is feeding into a cycle of tit-for-tat violence. The result is a continuous downward spiral where everyone loses — civilians suffer, extremism festers and trust across borders erodes. That cycle must be broken. Amid this chaos, the usual arbiters of peace — chiefly the US — are no longer seen as reliable brokers by many in the region. Washington's political polarization and its increasingly transactional approach to foreign policy have left question marks on its credibility. Russia, distracted and weakened by its war in Ukraine, is no longer a stabilizing counterbalance. China, for all its growing diplomatic ambitions, still lacks the deep historical ties and cultural literacy required for lasting influence in the Middle East. And both Russia and China lack the institutional depth to mediate in the Middle East effectively. Together, they possess the diplomatic relationships, economic leverage and regional legitimacy to chart a new course Christian Koch This vacuum presents a unique and urgent opportunity for Europe and the GCC. Together, they possess the diplomatic relationships, economic leverage and regional legitimacy to chart a new course. To seize this moment, the two sides should now jointly lay out a serious, coordinated plan for a postconflict Middle East — one grounded in realism, mutual respect and long-term strategic thinking. Europe has both a moral obligation toward and a strategic interest in Middle East stability. Waves of migration triggered by Middle Eastern wars have had profound political consequences across the continent, fueling the rise of populist movements and undermining social cohesion. Terror attacks on European soil — many inspired by chaos sown in Syria, Iraq and beyond — have shown that Middle Eastern instability does not stay confined within its regional borders. A prolonged Israel-Iran war would ensure that such instability will not only continue but increase. Europe still enjoys strong diplomatic relations with key players on both sides of the current divide. In the framework of a strategic partnership with the GCC states, an increased convergence of views on the causes and paths forward on regional security is being formed. Europe has long maintained dialogue with Iran under the framework of the Joint Comprehensive Plan of Action and European capitals continue to underline their unwavering support for Israel's security. It is also true that much of the Middle East leadership looks to Europe to play a diplomatic role that the US is either unable or unwilling to play, or one that regional players cannot fully claim. Yet, Europe is almost completely absent when it comes to peacebuilding in the Middle East. European diplomacy is reactive, cautious and inconsistent. Europe's failure to hold the Netanyahu government to account for its violations of international law when it comes to the crisis in Gaza has seriously undermined European credibility. To be clear, Europe's inattentiveness in its direct neighborhood has contributed to the region's insecurity. Unless reversed, the direct consequences for European security will mount. Meanwhile, the GCC has emerged as a diplomatic force in recent years. Saudi Arabia's outreach to Iran, the UAE's normalization with Israel via the Abraham Accords and Qatar's ability to mediate hostage negotiations in Gaza all illustrate a newfound maturity and pragmatism in Gulf diplomacy. This is coupled with a commitment to finding solutions to the region's perennial problem, exemplified in Saudi Arabia's leadership in the Global Alliance for the Implementation of the Two-State Solution and the GCC's push, through the Arab League, for the Gaza reconstruction plan. The GCC also brings economic and soft power to the table. The bloc's financial clout will be essential to underwrite reconstruction efforts in conflict-ravaged areas. Its sovereign wealth funds will be critical for driving regional infrastructure projects that bind nations together through shared interests, while its religious and cultural influence will help foster narratives of coexistence rather than confrontation. In this equation, it must be underscored that military victories will be fleeting and only political solutions will endure Christian Koch Moreover, the GCC has a vested interest in regional stability. The fallout from a full-scale Iran-Israel war would be catastrophic for Gulf economies, particularly given the vulnerability of maritime trade routes and oil infrastructure. Thus, preventing further escalation is not merely an act of altruism — it is an existential necessity. Now is not the time for shoulder shrugging or continued complacency. Instead, it is time for leadership and foresight. Critics will argue that the region is too fractured, the enmities too entrenched. But history shows that the most fruitful diplomacy often arises from the moments of greatest danger. The EU itself was born out of the ashes of two world wars. The Helsinki Accords emerged during the Cold War's tensest period. Furthermore, the current waves of attacks between Israel and Iran have shaken the status quo. They have reminded all regional actors of the fragility of peace and the urgency of restraint. In this equation, it must be underscored that military victories will be fleeting and only political solutions will endure. Based on their shared vision for a better and more stable future, Europe and the GCC must now act together, not as distant benefactors or cautious observers, but as co-architects of a new Middle East, outlining a path for a regional system of cooperation and security. Both have ties across the regional divide and can serve as stabilizing forces by offering a roadmap toward de-escalation and longer-term security arrangements. Waiting for the perfect moment is futile, as the only current certainty is that inaction will result in more lives lost, more cities destroyed and more generations condemned to cynicism and despair. The window for diplomacy remains open, but that opportunity must be urgently seized, as the cost of failure will disperse far beyond the borders of the Middle East and be felt around the globe.
Arab News
33 minutes ago
- Arab News
Pakistan, UAE voice concern over Israel-Iran war as Trump seeks ‘end' to nuclear threat
ISLAMABAD: Pakistan and the United Arab Emirates expressed deep concern over Israel's escalating war with Iran, the foreign office said on Tuesday, as US President Donald Trump said he wanted a 'real end' to Iran's nuclear program and warned of potential new developments in the coming days. The exchange between Pakistan's Deputy Prime Minister and Foreign Minister Ishaq Dar and his UAE counterpart, Sheikh Abdullah bin Zayed Al Nahyan, took place over a phone call, according to the official intimation. The war between Iran and US ally Israel, which began on Friday when Israel launched airstrikes on Iranian nuclear and military facilities, has alarmed a region already on edge since Israel's military assault on Gaza began in October 2023. Iran launched its own retaliatory missile attacks, targeting dozens of strategic sites in Israel, as civilian casualties mounted on both sides. There has been no sign of de-escalation so far, with both sides continuing to strike military and economic targets, raising fears of a wider regional conflict. 'Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar received a call from the Deputy Prime Minister/Foreign Minister of UAE, Sheikh Abdullah bin Zayed Al Nahyan,' the foreign office of Pakistan said in a social media post. 'The two leaders discussed the evolving regional situation in the wake of Israel's military strikes against the Islamic Republic of Iran,' it added. 'They expressed deep concern over the escalating tensions and underscored the urgent need to support efforts for ensuring regional peace and stability.' Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar @MIshaqDar50, received a call from the Deputy Prime Minister/Foreign Minister of UAE, Sheikh Abdullah bin Zayed Al Nahyan @ABZayed. The two leaders discussed the evolving regional situation in the wake of… — Ministry of Foreign Affairs - Pakistan (@ForeignOfficePk) June 17, 2025 Earlier, Trump spoke to reporters aboard Air Force One while returning from a Group of Seven summit in Canada. He said he may send US Middle East Envoy Steve Witkoff or Vice President JD Vance to Iran for talks, but added, 'it depends on what happens when I get back.' 'Iran cannot have a nuclear weapon, it's very simple,' he continued, adding that he wanted a 'real end' to Iran's nuclear ambitions, with Tehran 'giving up entirely' on any weapons program. The US president also warned residents in Tehran to evacuate amid fears of further escalation, but remained vague about Israel's next steps in the conflict. 'You're going to find out over the next two days,' he said. 'Nobody's slowed up so far.' With input from Reuters
Arab News
an hour ago
- Arab News
What to know about bunker-buster bombs and Iran's Fordo nuclear facility
BANGKOK: If the US decides to support Israel more directly in its attack on Iran, one option for Washington would be to provide the 'bunker-buster' bombs believed necessary to significantly damage the Fordo nuclear fuel enrichment plant, built deeply into a a bomb would have to be dropped from an American aircraft, which could have wide-ranging ramifications, including jeopardizing any chance of Iran engaging in Trump's desired talks on its nuclear program. Israeli officials have also suggested that there are other options for it to attack Fordo as it seeks to destroy Iran's nuclear aside from a commando attack on the ground or a nuclear strike, the bunker buster bomb seems the most likely is the bunker-buster bomb?'Bunker buster' is a broad term used to describe bombs that are designed to penetrate deep below the surface before exploding. In this case, it refers to the latest GBU-57 A/B Massive Ordnance Penetrator bomb in the American arsenal. The roughly 30,000 pound (13,600 kilogram) precision-guided bomb is designed to attack deeply buried and hardened bunkers and tunnels, according to the US Air believed to be able to penetrate about 200 feet (61 meters) below the surface before exploding, and the bombs can be dropped one after another, effectively drilling deeper and deeper with each successive bomb carries a conventional warhead, but the International Atomic Energy Agency has confirmed that Iran is producing highly enriched uranium at Fordo, raising the possibility that nuclear material could be released into the area if the GBU-57 A/B were used to hit the facility. However, Israeli strikes at another Iranian nuclear site, Natanz, on a centrifuge site have caused contamination only at the site itself, not the surrounding area, the IAEA has tough a target is Fordo?Fordo is Iran's second nuclear enrichment facility after Natanz, its main facility. So far, Israeli strikes aren't known to have damaged Natanz's underground enrichment hall, nor have the Israelis targeted tunnels the Iranians are digging is smaller than Natanz, and is built into the side of a mountain near the city of Qom, about 60 miles (95 kilometers) southwest of Tehran. Construction is believed to have started around 2006 and it became first operational in 2009 — the same year Tehran publicly acknowledged its addition to being an estimated 80 meters (260 feet) under rock and soil, the site is reportedly protected by Iranian and Russian surface-to-air missile systems. Those air defenses, however, likely have already been struck in the Israeli Israeli Prime Minister Benjamin Netanyahu has said the goal of attacking Iran was to eliminate its missile and nuclear program, which he described as an existential threat to Israel, and officials have said Fordo was part of that plan.'This entire operation ... really has to be completed with the elimination of Fordo,' Yechiel Leiter, Israel's ambassador to the US, told Fox News on does the US need to be involved?In theory, the GBU-57 A/B could be dropped by any bomber capable of carrying the weight, but at the moment the US has only configured and programed its B-2 Spirit stealth bomber to deliver the bomb, according to the Air B-2 is only flown by the Air Force, and is produced by Northrop to the manufacturer, the B-2 can carry a payload of 40,000 pounds (18,000 kilograms) but the US Air Force has said it has successfully tested the B-2 loaded with two GBU-57 A/B bunker busters — a total weight of some 60,000 pounds (27,200 kilograms).The strategic long-range heavy bomber has a range of about 7,000 miles (11,000 kilometers) without refueling and 11,500 miles (18,500 kilometers) with one refueling, and can reach any point in the world within hours, according to Northrop the US would get involved is another the G7 meeting in Canada, Trump was asked what it would take for Washington to become involved militarily and he said: 'I don't want to talk about that.'In a weekend interview with ABC News, Israeli Ambassador Leiter was asked about the possibility of the US helping attack Fordo and he emphasized Israel has only asked the US for defensive help.'We have a number of contingencies ... which will enable us to deal with Fordo,' he said.'Not everything is a matter of, you know, taking to the skies and bombing from afar.'
