Latest news with #IranDefenseMinister
Yahoo
a day ago
- Business
- Yahoo
Oil prices ease but hover near two-month highs as Middle East tensions escalate
Oil prices fell on Thursday morning, easing back after rallying but hovered around their highest point in two months, as investors eyed escalating tensions in the Middle East and a potential disruption to supply. Brent crude futures (BZ=F) fell 0.9% to $68.31 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) declined 0.9% at $67.56 a barrel. US president Donald Trump said on Wednesday that some of US personnel were being moved out of the Middle East because "it could be a dangerous place to be". This came following reports earlier in the day that the US was preparing a partial evacuation of its embassy in Baghdad, Iraq. CBS News reported that US officials had been told Israel was ready to launch an operation into Iran and that the US anticipated Iran could retaliate on certain American sites in Iraq. Read more: FTSE 100 LIVE: Stocks slump as UK GDP contracts in blow to Rachel Reeves Trump said in an interview with the New York Post, released earlier on Wednesday, that he was "less confident" about getting Iran to agree to halt its nuclear programme. In a press briefing on Wednesday, Iran's defence minister Aziz Nasirzadeh said: "Some officials on the other side threaten conflict if negotiations don't come to fruition. If a conflict is imposed on us ... all US bases are within our reach and we will boldly target them in host countries." Matt Britzman, senior equity analyst at Hargreaves Lansdown, said that oil prices remain near a two-month high "driven by rising US-Iran tensions and fears of supply disruptions. At the same time, optimism about energy demand grew after the US and China reached a trade framework, and US crude stockpiles fell more than expected, signalling strong consumption." Gold prices jumped on Thursday morning, as Middle East tensions buoyed demand for the safe-haven asset. Gold futures (GC=F) surged nearly 1% to $3,376 per ounce at the time of writing, while the spot gold price advanced 0.1% to $3,359.49 per ounce. The precious metal is considered to be a safe haven asset, in acting as a hedge amid political and economic uncertainty. Britzman said: "Gold was another winner, with its safe-haven appeal gaining traction amid rising Middle East tensions and softer US inflation data, which gave a modest boost to expectations for rate cuts." Read more: UK economy shrinks by 0.3% in April Data released on Wednesday showed that the US consumer prices index (CPI) rose by 0.1% month-on-month, which was below April's 0.2% rise and lower than economists' estimates of a 0.2% monthly gain in prices. On an annual basis, CPI rose 2.4% in May, a slight uptick from April's 2.3% gain, which marked the lowest yearly increase since February 2021. Investors were also monitoring the latest trade developments, after Trump said in a social media post on Wednesday afternoon that Washington's deal with China is "DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME". The pound rose slightly against the dollar (GBPUSD=X) on Thursday morning, up 0.2% to $1,3571, despite a bigger than expected contraction in UK economic growth. The Office for National Statistics (ONS) said that the UK's gross domestic product (GDP) — the standard measure of an economy's value — shrank by 0.3% in April, which was more than the 0.1% contraction expected by economists. The fall followed growth of 0.2% in March and a 0.7% rise in GDP in the first quarter. This latest economic data comes a day after chancellor Rachel Reeves delivered the UK spending review, sharing details of governmental department budgets for the next few years. Key announcements included a £29bn per year increase in funding for the NHS, while the government's defence budget is set to increase from 2.3% to 2.6% of the country's gross domestic product (GDP) from 2027. Reeves also shared details of a £39bn boost to funding for affordable housing and £15.6bn for transport projects in England's largest city regions outside of London. Stocks: Create your watchlist and portfolio Danni Hewson, head of financial analysis at AJ Bell, said: "It's hard not to look at today's headline fall in economic growth as anything other than inevitable. Company after company had warned the chancellor that the decisions taken during last year's budget would impact business growth and create huge uncertainty about existing staffing levels." "Rachel Reeves has said she is determined to deliver growth, and her spending plans have been given a cautious welcome by business groups up and down the country — but the caution speaks volumes," she said. "Can the government's trade policies and spending plans deliver the promised growth or was the energy demonstrated by the UK economy at the start of the year merely a tease?" In other currency moves, the pound fell 0.4% against the euro (GBPEUR=X), trading at €1.1743 at the time of writing. More broadly, the the FTSE 100 (^FTSE) was little changed, trading at 8,863 points at the time writing. For more details, on broader market movements check our live coverage here. Read more: Bitcoin price dips as markets cool after US-China tariff talks What you need to know about UK's private stock market Pisces UK house prices remain flat as buyer demand and sales steadyError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Times
2 days ago
- Business
- New York Times
U.S. to Withdraw Diplomats from Iraq Amid Iran Tensions
The State Department has decided to reduce its diplomatic presence in Iraq, the department said in a statement on Wednesday, as tensions spike amid signs that nuclear diplomacy between the United States and Iran may be deadlocked. Word of the U.S. decision, along with a warning from the United Kingdom about new threats to Middle East commercial shipping, came hours after President Trump said in a podcast released Wednesday that he has grown 'less confident' about the prospects for a deal with Iran that would limit its ability to develop nuclear weapons. American and Iranian negotiators have been planning to meet later this week for another round of talks, although Mr. Trump told reporters on Monday that Iran had adopted an 'unacceptable' negotiating position. The British warning came from the country's maritime trade agency, which issued a public advisory saying that it had 'been made aware of increased tensions within the region which could lead to an escalation of military activity having a direct impact on mariners.' The advisory urged commercial vessels transiting the Persian Gulf, the Gulf of Oman and the Strait of Hormuz to use heightened caution. The sense of alarm was heightened by comments from Iran's defense minister, General Aziz Nasirzadeh, who warned on Wednesday that in the event of a conflict following failed nuclear talks, the United States would suffer heavy losses from Iranian attacks on U.S. bases in the Middle East. His comments were reported by Iran's Islamic Republic News Agency. The State Department did not provide details on how many personnel would be removed from Iraq, or why. The Associated Press reported on Wednesday that nonessential U.S. personnel would be withdrawn from Baghdad, and that nonessential personnel and family members of diplomats had been authorized to depart from U.S. embassies in Bahrain and Kuwait.
