Crude sinks as Trump delays decision on Iran strike
Speculation had been swirling that Trump would throw his lot in with Israel, but on Thursday he said he would decide "within the next two weeks" whether to involve the United States, giving diplomacy a shot to end the hostilities.
While tensions are sky high amid fears of an escalation, the US president's remarks suggested the crisis could be prevented from spiralling into all-out war between the Middle East foes.
Since Israel first hit Iran last Friday, the two have exchanged deadly strikes and apocalyptic warnings, though observers said the conflict has not seen a critical escalation.
European foreign ministers were due to meet their Iranian counterpart on Friday in Geneva.
In a statement read out by White House Press Secretary Karoline Leavitt, the president said: "Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks."
Leavitt added: "If there's a chance for diplomacy the president's always going to grab it, but he's not afraid to use strength as well."
Both main oil contracts were down around two percent Friday but uncertainty prevailed and traders remained nervous.
"Crude still calls the shots, and volatility's the devil in the room -- and every trader on the street knows we're two headlines away from chaos," said Stephen Innes at SPI Asset Management.
"Make no mistake: we're trading a geopolitical powder keg with a lit fuse.
"President Trump's two-week 'thinking window' on whether to join Israel's war against Iran is no cooling-off period -- it's a ticking volatility clock."
Stocks were mixed following a public holiday in New York, with Hong Kong, Taipei, Mumbai and Bangkok all up with London, Paris and Frankfurt.
Seoul's Kospi led the gains, rising more than one percent to break 3,000 points for the first time in nearly three and a half years.
The index has risen every day except one since the June 4 election of a new president, which ended months of political crisis and fuelled hopes for an economic rebound.
Tokyo fell as Japanese core inflation accelerated, stoked by a doubling in the cost of rice, a hot topic issue that poses a threat to Prime Minister Shigeru Ishiba ahead of elections next month.
There were also losses in Shanghai, Sydney, Singapore, Manila and Jakarta.
The Middle East crisis continues to absorb most of the news but Trump's trade war remains a major obstacle for investors as the end of a 90-day pause on his April 2 tariff blitz approaches with few governments reaching deals to avert them being imposed.
"While the worst of the tariffs have been paused, we suspect it won't be until those deadlines approach that new agreements may be finalised," said David Sekera, chief US market strategist at Morningstar.
"Until then, as news emerges regarding the progress and substance of trade negotiations, these headlines could have an outsize positive or negative impact on markets."
Key figures at around 0715 GMT
Brent North Sea Crude: DOWN 2.6 percent at $76.85 per barrel
Tokyo - Nikkei 225: DOWN 0.2 percent at 38,403.23 (close)
Shanghai - Composite: DOWN 0.1 percent at 3,359.90 (close)
London - FTSE 100: UP 0.3 percent at 8,819.26
Euro/dollar: UP at $1.1517 from $1.1463 on Thursday
Pound/dollar: UP at $1.3467 from $1.3429
Dollar/yen: DOWN at 145.38 yen from 145.63 yen
Euro/pound: UP at 85.51 pence from 85.36 pence
© 2025 AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
LeMonde
24 minutes ago
- LeMonde
Second woman accuses French senator Guerriau of drugging her
A French senator accused of drugging an MP with the intent to assault her is facing an accusation from another woman, according to French television. The woman, who has not been named, accused Joël Guerriau of abusing her at his home in Paris in May 2022. The 67 year old already faces charges over drugging centrist deputy Sandrine Josso's drink in November 2023, an accusation he has denied. "I decided to bury it deep inside me," said the woman, speaking with her face covered and voice altered on France 2 late Thursday. The woman said she felt "dizzy" before coming to her senses in the senator's bedroom, who she knew from political circles and with whom she had a legal dispute. France 2 said the woman has contacted police but has not yet filed a complaint. A lawyer for Guerriau told France 2 that the center-right senator "strongly denies these new rumors," calling them "absurdities with the sole purpose of bringing Joël Guerriau to the public gallows." France's Horizons party, led by former prime minister Edouard Philippe, suspended Guerriau in November 2023 after he was formally charged with drugging Josso as part of a plot to carry out a sexual assault. Josso − who is nearly two decades his junior − said she felt ill after accepting a drink at the Paris home of the senator, with whom she was not in a relationship. Tests revealed that Josso had ecstasy in her system, prompting her to file the criminal complaint. Guerriau has denied any intention to sexually assault the lawmaker and has rejected the accusation that he deliberately drugged her, describing it as a "handling error." He has so far ruled out resigning, calling it "totally unfair" to step down before the court's ruling. The latest allegation against Guerriau comes months after the world was shocked by Frenchman Dominique Pelicot, who was jailed for 20 years for repeatedly drugging his wife so he and strangers could rape her. The shocking case, involving scores of men, brought widespread attention to the issue of consent. The French Sénat passed a bill on Wednesday to include lack of consent in the country's criminal definition of rape, paving the way for its official adoption in the coming months. Consent-based rape laws already exist in several European countries including Germany, the Netherlands, Spain and Sweden.
France 24
an hour ago
- France 24
European powers to offer Iran 'diplomatic solution' to conflict: Macron
French Foreign Minister Jean-Noel Barrot will later Friday meet Iranian counterpart Abbas Araghchi in Geneva "to make a complete diplomatic and technical offer for negotiations," Macron told reporters, adding that France and allies Germany and the UK were "putting a diplomatic solution on the table". "Iran must show that it is willing to join the platform for negotiations we are putting on the table," Macron said on the sidelines of the Paris Air Show in Le Bourget outside the French capital. "It is essential to prioritise a return to substantive negotiations (with Iran) which include nuclear -- to move to zero enrichment (by Iran of uranium) -- ballistics, to limit Iranian capacities, and the financing of all the terrorist groups that destabilise the region," Macron said. He said that the offer to be made by Barrot and his German and UK counterparts to Araghchi later Friday would have four aspects. The first would forsee a resumption of work by the UN atomic agency, with "the capacity to go to all the sites", so that Iran moves to zero enrichment of uranium, Macron said. The second and third aspects would comprise oversight of Iran's ballistics activities and how it finances proxies in the region, he added. The fourth would be the liberation of "hostages" by Iran, said Macron, referring to the foreigners jailed by the Islamic republic who include two French citizens. Macron said that "no-one should neglect the risk that an Iran with nuclear weapons would present", adding that the Islamic republic presented an "existential risk" for Israel. But the French president also criticised the scope of the military action by Israel which has hit targets beyond nuclear and ballistics facilities. "I consider that strikes that hit civilian or energy facilities and hit civilian populations must absolutely stop. Nothing justifies this." Macron also warned Israel that military action alone would not be sufficient to degrade the Iranian nuclear programme. "No one seriously thinks that this risk (posed by the Iranian atomic drive) can be responded to only through the operations that are currently underway," he said. "There are facilities that are extremely well protected we do not know exactly where the uranium enriched to 60 percent is." © 2025 AFP
Euronews
an hour ago
- Euronews
Could China's rare earth pivot ease strain on the automotive sector?
China has approved a number of rare earth export licences, a move that could provide modest relief to global manufacturers struggling with supply disruptions. But with export volumes still sharply down and no transparency on which firms benefit, Europe's automotive industry remains vulnerable to further disruption. At a press conference on Thursday, China's commerce ministry confirmed it had approved 'a certain number' of export licence applications for rare earths and magnets. These minerals are used in an array of high-tech products such as smartphones and jet engines. Rare earths such as neodymium, dysprosium and terbium are indispensable for producing lightweight, high-efficiency motors in electric and hybrid vehicles. China's announcement follows months of tension sparked by Beijing's decision in April to impose new export controls on seven rare earth elements and related products — just days after Washington introduced steep tariffs on Chinese goods. According to commerce ministry spokesperson He Yadong, China will 'continue to strengthen the review and approval' of licence applications and remains 'willing to enhance communication and dialogue' on export controls. The updated tone from Beijing also arrives just weeks before a major EU-China summit set for 24 to 25 July in Beijing, commemorating 50 years of diplomatic relations. Chinese customs data shows the stark impact of the restrictions. Exports of rare earth magnets plunged 74% in May compared to a year earlier, the steepest drop in over a decade. Shipments to the United States fell by 93%, according to a Wall Street Journal analysis. Total export volumes for May stood at just 1.2 million kilograms, the lowest since the start of the COVID-19 pandemic in early 2020. Earlier April exports also dropped by 45% year-on-year. JL Mag Rare-Earth, a major Chinese magnet supplier to Tesla, Bosch and General Motor, said last week that it had begun receiving licences for shipments to the US, Europe and Southeast Asia. Since April, hundreds of export licence applications have been submitted to Chinese authorities, but only about one-quarter have reportedly been approved. Some firms have encountered requests to disclose IP-sensitive information, while others have faced outright rejections based on unclear procedural grounds. ING economist Rico Luman indicated that with 'nearly 70% of global rare earth production and more than 90% of processing taking place in China, the world remains heavily reliant' on the country. Though rare earths are not geologically scarce — cerium, for instance, is more abundant than copper — their extraction is costly, and mineable concentrations are rare. "It's not a question of scarcity, but of concentration," Luman added. China also supplies more than 90% of the world's demand for rare earth permanent magnets, frequently used in electric motors and wind turbines. Without access to these materials, the European automotive supply chain risks paralysis. The automotive sector relies heavily on rare earth magnets for electric motors, power steering, sensors and other components used in both combustion and electric vehicles. 'China's export restrictions are already shutting down production in Europe's supplier sector,' Benjamin Krieger, Secretary General of CLEPA, warned earlier this spring. His call for 'transparent, proportionate' licensing remains relevant, even as some licences begin to clear. The European Chamber of Commerce in China confirmed that while some progress has been made, challenges persist. 'The situation is improving, although the percentage of cleared licences does vary. Additionally, even once the licence is given, delays can still be seen in customs clearances,' said Adam Dunnett, the Chamber's secretary general. Beijing's latest move to ease export restrictions on key components for the automotive industry offers only limited relief to a sector under strain. The European automotive industry, already grappling with competition from lower-cost Chinese electric vehicles, remains vulnerable to material shortages, delays and discretionary actions from Beijing — thereby reinforcing China's leverage in global trade negotiations. The second season of My Wildest Prediction has come to an end. Over the last eight months, we have delved into the business world through the words of entrepreneurs, researchers, futurists and experts from around the globe. Our goal has been to understand the challenges facing our economy and society, exploring how they affect our lives now and in the years to come. My Wildest Prediction is a podcast series from Euronews Business where we dare to imagine the future with business and tech visionaries. Among other topics, we discussed work. Some guests, like bestselling author Bruce Daisley, painted a pessimistic picture, predicting that 'work will get worse before it gets better'. Others, like futurist Dom Price, offered a more radical point of view, arguing that we will abandon the productivity myth — the idea that constantly working is the key to success. Overall, our guests agreed that work will become increasingly mobile, with entrepreneur Karoli Hindriks arguing that 'passports will be obsolete' and marketing expert Rory Sutherland saying that people will adopt a nomadic lifestyle. We also explored the future of our cities and our relationship with the environment. Urbanist Greg Clark predicted that by 2080, there will be more than 10 billion people on Earth, with 90% living in cities. Additionally, explorer Bertrand Piccard forecast that hydrogen planes will fly commercially by 2035. And of course, artificial intelligence (AI) was extensively discussed in our podcast and remained a polarising topic. Human resources expert Patty McCord believes 'AI will not be the big scary thing we think', while others like professor Scott Galloway predicted that AI will fuel US domestic terrorism. This is just a glimpse of the predictions shared during our season. Watch the wrap-up and listen to the episodes on YouTube or your favourite audio platforms.
