Oil prices rise despite fragile ceasefire between Iran and Israel
Investors kept an eye on the Middle East on Wednesday as a fragile ceasefire between Iran and Israel appeared to hold after initial shakiness.
Both sides claimed victory; Iran's president said Israel had suffered a 'historic punishment', while Israel's prime minister argued the offensive had removed 'the Iranian nuclear threat'.
A new US intelligence report nonetheless found that Tehran's nuclear programme had only been set back by a few months by US strikes. Washington denied the findings of the leaked report.
Early in Europe, Brent crude had risen around 1.15% to $67.91 a barrel, while WTI was 1.21% higher at $65.15. The prices suggest the market has still not fully calmed after the conflict in the Middle East, with investors continuing to monitor the shaky ceasefire.
US President Trump rebuked both countries for violating the announced ceasefire on Tuesday.
'Israel, as soon as we made the deal, they came out and they dropped a load of bombs, the likes of which I've never seen before, the biggest load that we've seen,' he said.
On his social media platform, Truth Social, he wrote: 'Israel, do not drop those bombs. If you do, it is a major violation. Bring your pilots home, now!'
Trump claimed that neither Iran nor Israel "know what the f*** they're doing".
Stocks, meanwhile, rose modestly on Wednesday. Dow Jones futures rose 0.06% to 43,452.00, while S&P 500 futures gained 0.05% to 6,149.25.
In Asian trading, the Shanghai Composite index climbed 0.44% to 3,435.60, the Nikkei 225 rose 0.31% to 38,910.93, Hong Kong's Hang Seng jumped 0.78% to 24,364.79, while South Korea's Kospi was almost flat, rising 0.01% to 3,104.20.
Australia's S&P/ASX 200 notched up 0.09% to 8,563.20.
The US Dollar Index was up 0.13% at 97.98 although the currency has still failed to recover from losses seen earlier this year. The euro rose less than 1% against the dollar while the Japanese Yen dropped around 0.12% against its US safe-haven alternative.
'The situation in the Middle East is fluid. While the downside risks have subsided, the situation can change quickly and the balance of risks remains weighted toward higher oil prices,' said Ryan Sweet, Chief US Economist at Oxford Economics, on Tuesday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
an hour ago
- Euronews
Is Russia using Iran's defence tech in Ukraine?
Ukrainian drone hunters picking up the debris from Russia's nightly assault on their cities found a weapon last week that stood out from the rest. It had an advanced camera, a computing platform powered by artificial intelligence and a radio link, allowing an operator to pilot it remotely from Russia. It also contained new, Iranian-made, anti-jamming technology, according to a Ukrainian drone expert. Most Russian attack drones are black, said Serhii Beskrestnov, an electronics expert more widely known as Flash. The new one, he told The Associated Press, was white. Inside, there were no markings or labels consistent with Russian-made drones. Instead, the stickers followed a 'standard Iranian labelling system,' Beskrestnov said. Experts who spoke to AP said the labels are not conclusive proof but the English-language words are consistent with how Iran marks its drones. It is quite possible, they said, that it was sold by Iran to Russia to test in combat. Moscow has pummeled Ukraine almost nightly with Iranian-designed drones throughout the course of the war, now in its fourth year. They swarm above Ukrainian cities, their moped-like sound filling the air, as air defences and sharpshooters take aim. While some carry warheads, many are decoys. Russia is improving its drone technology and tactics, striking Ukraine with increasing success. But the UK's defence ministry said Israel's strikes on Iran will 'likely negatively impact the future provision of Iranian military equipment to Russia," since Tehran had supplied 'significant quantities' of attack drones to Moscow. Israeli attacks on Iran Israel's military would not comment on what it struck. Although it has carried out sweeping attacks across Iranian military facilities and the US bombed nuclear sites, the impact on Iran's drone industry is not yet clear. The anti-jammer in the latest drone discovered in Ukraine contained new Iranian technology, suggested Beskrestnov. Other components in Russia's drones often come from Russia, China and the West. Although Russia's drones are based on an Iranian design, the majority are now made in Russia. And because much of the technology to make them, including the Iranian software and technical expertise, has already been transferred to Russia, the immediate impact on Moscow's drone program could be limited, experts said. However, if Israel struck facilities producing drones and components — such as engines and anti-jamming units — which are shipped to Russia, then Moscow could face supply shortages, experts suggested. A secretive Russian factory Moscow makes its Shahed — meaning 'witness' in Farsi — drones based on an Iranian model in a highly secure factory in central Russia. The Alabuga plant in the Tatarstan region took delivery of its first Iranian drones in 2022 after Russia and Iran signed a $1.7 billion (€1.4 billion) deal. It later established its own production lines, churning out thousands of them. The upgrades identified from debris in Ukraine are the latest in a series of innovations that began with Russia buying drones directly from Iran in the fall of 2022, according to leaked documents from Alabuga previously reported on by AP. In early 2023, Iran shipped about 600 disassembled drones to be reassembled in Russia before production was localised. In 2024, the design was adapted. Specialists added cameras to some drones and implemented a plan, revealed in an AP investigation, dubbed Operation False Target — creating decoys to overwhelm Ukrainian air defences. Alabuga also modified the Shahed to make it more lethal, creating a thermobaric drone which sucks out all the oxygen in its path — potentially collapsing lungs, crushing eyeballs and causing brain damage. The size of the warhead was also upgraded. Jet-propelled drones and AI In at least one case, Iran shipped a jet-powered Shahed that Russia 'experimented' with in Ukraine, said Fabian Hinz, an expert on Russian and Iranian drones at the International Institute for Strategic Studies in London. Ukraine's air force found two more examples of jet-powered Shaheds in May but it appears they have not been widely adopted. That's possibly because the Iranian design uses a very sophisticated jet engine that also powers Iran's cruise missiles, Hinz said. That likely makes it too expensive to use nightly in Ukraine, he said, even if the engine is swapped to a cheaper Chinese model. The electronics in the drone, most recently found in Ukraine, are also very expensive, Beskrestnov said, pointing to its AI computing platform, camera and radio link. It's unclear why it was deployed but Beskrestnov suggested it could be used to target 'critical infrastructure,' including electrical transmission towers. Previous versions of the Shahed drone could not hit a moving object or change their flight path once launched. They sometimes ended up 'travelling in circles all through Ukraine before they finally hit a target,' which made them easier to shoot down, said David Albright of the Washington-based Institute for Science and International Security. The radio link means an operator can communicate with the drone from Russia, introduce a new target and potentially control many drones at the same time, the experts said. The remotely operable Shahed has similarities to drones Russia is already using on the front lines and is particularly resistant to jamming, Beskrestnov said. There are eight, rather than four, antennas on the drone, which means it is harder for Ukraine to overwhelm it with electronic warfare, he said. The new drone has markings that suggest the anti-jamming unit was made in Iran within the past year and similarities to Iranian components found in older models of the Shahed, said Beskrestnov. Such advanced antennas, said Hinz, have not previously been seen on drones used in Ukraine but have been found on Iranian missiles destined for Iran-backed Houthi rebels in Yemen. In a statement, Ukraine's Ministry of Defence told AP that in the past four months, it had found drones with eight and 12 antennas made in China and Russia. Despite sanctions, both Russia and Iran have continued to find ways to procure Western technology. The drone's AI computing platform can help it autonomously navigate if communications are jammed. Similar technology was used by Ukraine to attack aircraft deep inside Russia during Operation Spiderweb, when it used drones to target Russian air bases hosting nuclear-capable strategic bombers. Changing tactics Russia is improving its technology at the same time as it is also changing its tactics. Moscow is flying the Shahed drones at high altitudes where they are out of reach of Ukrainian shooters, as well as lower down to avoid radio detection. It is also carrying out massive group attacks on cities, including where drones sometimes dive-bomb a target, Ukraine's ministry of defence said. The drones can be used to clear a path for cruise missiles or to exhaust Ukrainian air defences by sending a wave of decoys followed by one or two with a warhead. The tactics appear to be working. AP collected almost a year's worth of Russian drone strike data on Ukraine posted online by the Ukrainian air force. An analysis shows that Russia significantly ramped up its attacks after US President Donald Trump was inaugurated in January. And Russian hits have increased markedly since March — shortly before reports emerged that Russia was using Shahed drones with advanced jammers. In November 2024, only around 6 per cent of drones hit a discernible target but, by June, that reached about 16 per cent. On some nights, almost 50 per cent of drones got through Ukraine's air defences. Ukraine's ministry of defence said the Shaheds' effectiveness is likely because Russia is firing more drones, including decoys, as well as the change in technology and tactics. But although Russia appears to have had increasing success striking Ukraine, it is not clear if that will continue. Israel's strikes on Iran will 'certainly' hurt Russia long-term, Albright said. Moscow, he said, is 'not going to be able to get as much assistance from Iran as it has been.'
France 24
an hour ago
- France 24
Trump insists Iran nuclear programme set back 'decades'
Over a 12-day conflict, Israel pounded Iranian nuclear and military sites while Iran launched waves of missiles at its foe during their deadliest-ever confrontation. The United States joined the fray in support of its ally, hitting two nuclear facilities with massive bunker-buster bombs over the weekend, while a guided missile from a submarine struck a third. But leaked US intelligence cast doubt on the damage caused by American strikes, saying they had set back Tehran's nuclear programme by just a few months. "They're not going to be building bombs for a long time," said Trump, adding that the strikes had set back the programme by "decades" and that the Iran-Israel ceasefire that he declared was going "very well". Earlier, Israel's military said it was "still early" to assess the damage caused to Iran's nuclear programme. "I believe we have delivered a significant hit to the nuclear programme, and I can also say that we have delayed it by several years," said Israeli military spokesman Brigadier General Effie Defrin. The head of Israel's military, Eyal Zamir, on Tuesday said Israel and the United States had set back Iran's nuclear programme "by years". But US media on Tuesday cited people familiar with the Defense Intelligence Agency intelligence report as saying the American strikes did not fully eliminate Iran's centrifuges or enriched uranium stockpiles. The strikes sealed off entrances to some facilities without destroying underground buildings, according to the report. Israel had said its bombing campaign, which began on June 13, was aimed at preventing Iran from acquiring a nuclear weapon, an ambition Tehran has consistently denied. Israeli Prime Minister Benjamin Netanyahu, in an address to the nation after the ceasefire, announced that "we have thwarted Iran's nuclear project". "And if anyone in Iran tries to rebuild it, we will act with the same determination, with the same intensity, to foil any attempt," he said. 'Legitimate rights' Iranian lawmakers on Wednesday voted in favour of suspending cooperation with the United Nations' nuclear watchdog, according to state TV. "The International Atomic Energy Agency, which refused to even marginally condemn the attack on Iran's nuclear facilities, put its international credibility up for auction," parliament speaker Mohammad Bagher Ghalibaf said, according to the broadcaster. The decision to suspend cooperation with the IAEA still requires the approval of the Guardian Council, a body empowered to vet legislation. Iranian President Masoud Pezeshkian said Tuesday his country was willing to return to negotiations over its nuclear programme, but that it would continue to "assert its legitimate rights" to the peaceful use of atomic energy. In an interview with the Al Araby Al Jadeed news outlet, Iranian Foreign Minister Abbas Araghchi said attacks on Iran's nuclear facilities would have "serious and profound repercussions" on the country's future. He said Iran remained committed to the Non-Proliferation Treaty but that it had failed "protect us or our nuclear programme", adding that Iran's approach towards the non-proliferation regime "will undergo changes", without elaborating. - Shadow war - While Iran and Israel have been locked in a shadow war for decades, their 12-day conflict was by far the most destructive confrontation between them. Israeli strikes hit nuclear and military targets -- killing scientists and senior military figures -- as well as residential areas, prompting waves of Iranian missile fire on Israel. The war culminated in US strikes on underground Iranian nuclear sites using bunker-busting bombs -- which Israel lacks -- followed by an Iranian reprisal targeting a US military facility in Qatar, the largest in the Middle East. Trump shrugged off that response as "weak", thanking Tehran for giving advance notice and announcing the contours of the ceasefire just hours later. Some Israelis welcomed the truce. "Finally, we can sleep peacefully. We feel better, less worried, for the kids, for the family. And I hope it stays that way. That's the most important," Yossi Bin, a 45-year-old engineer in Tel Aviv, told AFP. In Iran, people remained uncertain whether the peace would hold. Amir, 28, fled from Tehran to the Caspian Sea coast and told AFP by phone, "I really don't know... about the ceasefire but honestly, I don't think things will return to normal." Israeli strikes on Iran killed at least 610 civilians and wounded more than 4,700, according to the health ministry. Iran's attacks on Israel killed 28 people, according to official figures and rescuers. © 2025 AFP
Euronews
2 hours ago
- Euronews
Kaja Kallas: 'We've listened to Trump' on defence spending
The EU has 'listened to President Trump' and 'everyone is doing more' to boost European defence spending, High Representative for Foreign Affairs Kaja Kallas told Euronews Today as NATO leaders gather in the Hague on Wednesday for a landmark summit. Kallas was asked by Euronews' Shona Murray to comment on NATO Secretary General Mark Rutte's pre-summit message to the US president, lavishing praise on his handling of the Western alliance and the conflict in Iran. "You are flying into another big success in The Hague this evening. It was not easy but we've got them all signed on to five percent," Rutte wrote, in a message posted by Trump on social media, referencing the target for GDP expenditure that Trump has called for from NATO members. 'Mark Rutte is speaking Trump, I think he's speaking the language that President Trump definitely understands and he needs to get this across,' Kallas said. 'I think it very important that everyone is doing this 5% and agreeing to this.' 'President Trump has been calling for this for quite some time - that everybody should do more for their own defence, and Europe is stepping up, we definitely have listened to President Trump and everyone is doing more,' she said. 'Weakeness provokes' Putin, Kallas says Asked if the US was diverging from the other NATO members in its approach to Ukraine, Kallas said, 'when member states agreed to spend more on defence, that also means that they have more means to help Ukraine'. 'When it comes to Europe we have agreed that we will support Ukraine militarily, and we will also put more pressure on Russia so that they would also want peace in order end this war so it is very clear for us,' she said. She said security throughout the world 'is very much interlinked', citing North Korean soldiers being active in Ukraine, support that Iran is giving to Russia, and sanctions circumvention by some countries, 'so if we don't push back aggression in one place, it just is a call to use aggression elsewhere', Kallas said. Increased defence spending is the best path to deflect Russian President Vladimir Putin's aggression, Kallas said. 'I don't see into Putin's mind but looking back how he has been working, he understands strength,' she said, adding: 'If we invest more into defence, we are stronger so it doesn't provoke him." "Weakness provokes him: if he thinks that he's stronger, he can take up this war, then he will take up war, but if he sees that we are strong, then he doesn't look our way, and that's what we are doing.'
