Oil price drops, shares jump as Trump announces Israel-Iran ceasefire
Stocks rallied on Tuesday after US President Trump said that a "complete and total ceasefire" between Iran and Israel would take effect in the coming hours.
Iran's foreign minister denied that an official ceasefire agreement had been reached, but noted that Tehran would not continue its attacks as long as Israel halted its 'aggression'. At the time of writing, Israel had yet to comment.
The truce, which Trump is labelling the end of the '12-day war', came after Iran attacked a US base in Qatar on Monday, retaliating against the US bombing of its nuclear sites over the weekend.
In response to Tuesday's development, oil prices dropped as fears over a blockage to the Strait of Hormuz subsided.
About 20% of global oil and gas flows through this narrow shipping lane in the Gulf.
Brent crude, the international standard, dropped 2.92% to $69.39, while WTI dropped 3.18% to $66.35.
Last week, Brent reached over $78 a barrel, a level not seen since the start of this year.
Looking to the US, S&P 500 futures rose 0.58% to 6,112.00 on Monday, while Dow Jones futures increased 0.51% to 43,118.00.
Australia's S&P/ASX 200 jumped 0.89% to 8,550.10, South Korea's Kospi rose 2.75% to 3,097.28, and the Shanghai Composite index climbed 1.07% to 3,417.89.
Hong Kong's Hang Seng rose 2% to 24,162.70 and the Nikkei 225 increased 1.16% to 38,796.39.
The US Dollar Index slipped by 0.32% to 98.10. The euro gained 0.25% against the dollar while the yen dropped 0.48% in comparison to the greenback.
Economists had suggested that persistent threats to oil would increase the value of the US dollar and hurt other currencies such as the euro, notably as the US economy is more energy independent.
Greg Hirt, chief investment officer with Allianz Global Investors, told Euronews earlier this week that although the dollar may see a short lift on the Iran-Israel conflict, 'structural issues around a twin deficit and the Trump administration's volatile handling of tariffs should continue to weigh on an overvalued US dollar'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AFP
30 minutes ago
- AFP
Video of Trump lauding Bangladesh leader is manipulated
reads part of a Bengali-language Facebook post on May 12, 2025. It features a blurry video apparently showing Trump commending Yunus during a meeting. "Yunus is a great personality and my friend also. He has recently taken charge of the interim government of Bangladesh," Trump supposedly says. "Dr Yunus will play a big role in making Bangladesh prosperous." Image Screenshot of the false post taken June 19, 2025, with a red X added by AFP Similar posts among Yunus's supporters as political parties jostling for power in Bangladesh were demanding the Nobel Peace Prize winner to fix an election timetable. He has since announced polls will be held April 2026 (archived link). The South Asian nation of around 170 million people has been in political turmoil since former prime minister Sheikh Hasina was ousted by a student-led revolt in August 2024, ending her iron-fisted rule of 15 years. Comments to the posts indicate some social media users believed the video was authentic. A reverse image search on Google found of the meeting published on the verified Facebook page of American news channel Fox News on April 30, 2025 (archived link). But the audio has been manipulated and nowhere in the original clip does Trump refer to Yunus. "I just wanna thank everybody, this is really very impressive and I hope people at home get to see some of it," Trump says. "Nobody's ever done public cabinet meetings. They were quiet for a reason because they weren't impressive, especially in the last administration." Image Screenshot comparison of the manipulated video (L) and the clip from Fox News with similarities highlighted by AFP An analysis of the audio in the circulating clip using the voice cloning detection tool Hiya in the Verification Plugin, also known as InVID-WeVerify, found it is "very likely AI-generated" (archived link). Image AFP has previously debunked misinformation about Trump and Bangladesh here and here.
France 24
an hour ago
- France 24
Oil prices drop as Israel agrees to ceasefire proposal
Shares in Asia were buoyant, as fears of an energy market shock eased following 12 days of war between Israel and its arch-foe. In Europe, London, Paris and Frankfurt also rose at the open. At around 0830 GMT on Tuesday, Brent was down 3.5 percent at $69.00 per barrel, while the main US crude contract WTI was 3.5 percent lower at $66.10 per barrel. "A potential end to the conflict has been welcomed by market participants," wrote Lee Hardman at MUFG, who noted that Brent "has now almost fully reversed all of the gains since the conflict started". "In the FX market a similar reversal is underway with the US dollar giving back recent gains. If Middle East risks now fade into the background as a market driver, it is more likely that the US dollar weakening trend will resume." Crude prices had briefly spiked Monday morning on the prospect that Iran could retaliate to a weekend US attack on its nuclear facilities by throttling oil transport through the strategic Strait of Hormuz. But they then tumbled as much as seven percent when Iran said it had launched missiles at a major US base in Qatar, with oilfield assets unaffected. 'War premium' "Tehran played it cool. Their 'retaliation' hit a US base in Qatar -- loud enough for headlines, quiet enough not to shake the oil market's foundations," said Stephen Innes at SPI Asset Management. "And once that became clear, the war premium came crashing out of crude." The Israeli government said in a statement Tuesday that the country had "achieved all the objectives" in its war with Iran, adding that it had removed "an immediate dual existential threat: nuclear and ballistic". "Israel will respond forcefully to any violation of the ceasefire," the statement said. Tokyo ended the day 1.1 percent higher and Shanghai closed up 1.2 percent. Hong Kong closed up 2.06 percent on Tuesday afternoon. The airline Virgin Australia climbed sharply as it re-entered the local share market, a dramatic comeback from near bankruptcy more than four years ago. London gained 0.7 percent in early trade -- with gains limited as shares in oil majors Shell and BP fell owing to the oil price drop -- while Paris was up 1.5 percent and Frankfurt jumped 1.8 percent In forex markets, the dollar gave up gains after Federal Reserve Governor Michelle Bowman said she would support cutting interest rates at July's meeting if inflation holds steady. The market currently expects the Fed to resume cutting interest rates in September. Bowman indicated that "ongoing progress in tariff negotiations providing a less risky economic environment to adjust policy"," prompting the dollar to weaken, Wan said. Key figures at around 0830 GMT Tokyo - Nikkei 225: UP 1.1 percent at 38,790.56 (close) Hong Kong - Hang Seng Index: UP 2.06 percent at 24,177.07 (close) Shanghai - Composite: UP 1.15 percent at 3,420.57 (close) Euro/dollar: UP at $1.1591 from $1.1581 on Monday Pound/dollar: UP at $1.3598 from $1.3526 Dollar/yen: DOWN at 145.04 yen from 146.12 yen Euro/pound: DOWN at 85.26 pence from 85.60 pence London - FTSE 100: UP 0.3 percent at 8,787.24 © 2025 AFP
France 24
an hour ago
- France 24
The strategic importance of US base in Qatar targeted by Iran
02:07 24/06/2025 After 12 days of war with Iran, what gains for Israel? 24/06/2025 How Iran's degraded network of proxies left it isolated in war with Israel 24/06/2025 Trump ceasefire plan falters as Israel says Iran launched more missiles 23/06/2025 #Iran: Evin Prison struck by Israel 23/06/2025 Russia hits Kyiv with deadly drone and missile barrage 23/06/2025 Satellite images indicate severe damage to Iran's Fordow plant 23/06/2025 'Mission creep'? Signs Israel's objectives in Iran are shifting 23/06/2025 Israel targets Tehran prison as Iran fires missiles 23/06/2025 'I am so sad, I'm crying': Iranian community in California's 'Tehrangeles' reacts to US strikes
