Latest news with #TheDepartmentofEnergy
Qatar Tribune
14 hours ago
- Business
- Qatar Tribune
Oil falls over 7% as Iran focuses retaliation on US military base
Agencies New York Oil prices sank more than seven percent on Monday after Iran attacked a US military base in neighboring Qatar in retaliation for US weekend strikes on Iranian nuclear facilities. Futures for West Texas Intermediate fell 7.42 percent to $68.36 a barrel, while Brent oil futures dropped 7.34 percent to $71.36 a barrel, its lowest level in 10 days. A US defence official said there were no known American casualties from the incident, which analysts said did not appear to be near key oil infrastructure. John Kilduff of Again Capital described the Iranian action as 'somewhat measured' and apart from population centers. 'This is a face-saving measure by the Iranians and hopefully the diplomatic off-ramp will be taken,' Kilduff said. The Iran-Israel clash has focused worry on the Strait of Hormuz, a strategic waterway for seaborne oil that has long been used by Iran as a geopolitical bargaining chip. Tehran has for decades threatened to close the strait every time tensions soared, but never acted on its warning. But Kilduff said, 'it's pretty clear that this is not going to turn into – right away at least – any kind of impact on oil flows in the region, particularly the Strait of Hormuz.' President Donald Trump on Monday also demanded that 'everyone' keep oil prices down or they would play 'into the hands of the enemy,' as the conflict in the Middle East escalates following US strikes on Iran. Trump's message comes after the US bombed Iran's key nuclear sites over the weekend, putting the world on edge that the Islamic Republic might target energy supplies in the Middle East and cause a spike in global oil prices. It wasn't clear who specifically Trump was speaking to in his post, though he seemed to be addressing the US oil industry. Some oil companies had warned earlier in the year that they might have to cut production after prices tumbled to multiyear lows on Trump's tariffs and OPEC+ boosting supply. 'To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!,' Trump said in a subsequent post on Monday. Oil production decisions in the U.S. are made by private companies in response to market dynamics. The Energy Department does not drill for oil. 'As the President said, producers must keep oil prices down or risk playing into the hands of the enemy,' White House spokesperson Harrison Fields said when asked who Trump was addressing. Equities remained restrained, with the dollar getting a modest safe-haven bid and no sign of a rush to bonds. Some market participants hoped Iran might back down, with its nuclear ambitions curtailed, or even that regime change might bring a less hostile government to power there. 'That said, any sign of Iranian retaliation or threat to the Strait of Hormuz could quickly shift sentiment and force markets to reprice geopolitical risk more aggressively,' said Charu Chanana, chief investment strategist at Saxo. The Strait of Hormuz is only about 33 km wide at its narrowest point and around a quarter of global oil trade and 20 percent of liquefied natural gas supplies passthrough it. Analysts at JPMorgan cautioned that past episodes of regime change in the region typically resulted in oil prices spiking by as much as 76 percent and averaging a 30 percent rise over time. Goldman Sachs warned prices could temporarily touch $110 a barrel should the critical waterway be closed for a month. World share markets, especially in Asia, struggled. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.9 percent, dragged down by shares in Taiwan which closed 1.42 percent lower, while Chinese blue chips closed higher 0.3 percent and Japan's Nikkei eased 0.1 percent. Japan's manufacturing activity data on Monday showed a return to growth in June after nearly a year of contraction, but demand conditions remain.
Yahoo
20 hours ago
- Business
- Yahoo
Oil tanks 6% as Iranian retaliation against US spares energy supply
Oil futures slid 6% on Monday as Iran appeared to spare the energy market while the country launched missiles targeted at a US air base in Qatar in retaliation for US bombings on Iranian nuclear sites. Brent crude (BZ=F), the international benchmark, dropped to $72 per barrel. West Texas Intermediate (CL=F) also fell roughly 6% to trade below $70 per barrel. The declines came after Iranian state media said it launched missile attacks against a US air base in Qatar, matching the number of bombs dropped by the US over the weekend, in a move the Associated Press said signaled "a likely desire to deescalate." Prior to the retaliatory move, Wall Street weighed various scenarios after President Trump announced on Saturday that the US struck three Iranian nuclear facilities, including the threat of Iran closing the Strait of Hormuz, a critical chokepoint for oil flows. On Monday morning, President Trump posted on social media: "To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!" "The main reason for this stability is that energy infrastructure has largely been spared from direct attacks, with number of oil tankers transiting through the Strait of Hormuz remaining steady," JPMorgan's Natasha Kaneva and her team wrote on Monday morning. On Sunday, futures spiked after Iran's parliament voted to close the Strait of Hormuz, but the final decision rests with Iran's Supreme National Security Council and Supreme Leader Ayatollah Ali Khamenei. The oil market is now factoring in "a one-in-five chance of a material disruption in Gulf energy production flows, with potential for crude prices to reach the $120-130 range," Kaneva wrote. "Yet, beyond the short-term spike induced by geopolitics, our base case for oil remains anchored by our supply-demand balance, which shows that the world has enough oil," she added. She also noted that "with fewer reliable partners in the Middle East and limited regional appetite for a broader conflict, Iran faces a constrained set of options and a heightened set of risks as it deliberates its course of action." Other possible retaliatory moves from Iran could include supporting Yemen's Houthi rebels in renewed attacks on commercial shipping, or going after energy infrastructure in neighboring countries. If crude climbs into the $120 to $130 range, analysts predict gasoline and diesel prices could rise by as much as $1.25 per gallon. "Consumers would be looking at a national average gasoline price of around $4.50 per gallon — closer to $6.00 if you're in California," Lipow Oil Associates president Andy Lipow said in a Sunday note. The key issue isn't just the potential for supply disruption, but how long it lasts, Rebecca Babin, senior energy trader at CIBC Private Wealth, told Yahoo Finance on Sunday. "If infrastructure is hit but can be quickly restored, crude may struggle to hold gains," she said. "But if Iran's response causes lasting damage or introduces long-term supply risk, we're likely to see a stronger and more sustained move higher." Last week, JPMorgan analysts noted that since 1967 — aside from the Yom Kippur War in 1973 — none of the 11 major military conflicts involving Israel have had a lasting impact on oil prices. In contrast, events directly involving major regional oil producers, such as the first Gulf War in 1990, the Iraq War in 2003 and the imposition of sanctions on Iran in 2018, have all led to meaningful and sustained moves in oil markets. "During these episodes, we estimate that oil traded at a $7–$14 per barrel premium to its fair value for an extended period," JPMorgan's Kaneva wrote. They added that the most significant and lasting price impacts historically come from "regime changes" in oil-producing countries, whether that be through leadership transitions, coups, revolutions, or major political shifts. "While demand conditions and OPEC's spare capacity shape the broader market response, these events typically drive substantial oil price spikes, averaging a 76% increase from onset to peak," Kaneva wrote. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) had raised output in the months leading up to Israel's strike on Iran on June 13. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error 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
Yahoo
20 hours ago
- Business
- Yahoo
Oil tanks 6% as Iranian retaliation against US spares energy supply
Oil futures slid 6% on Monday as Iran appeared to spare the energy market while the country launched missiles targeted at a US air base in Qatar in retaliation for US bombings on Iranian nuclear sites. Brent crude (BZ=F), the international benchmark, dropped to $72 per barrel. West Texas Intermediate (CL=F) also fell roughly 6% to trade below $70 per barrel. The declines came after Iranian state media said it launched missile attacks against a US air base in Qatar, matching the number of bombs dropped by the US over the weekend, in a move the Associated Press said signaled "a likely desire to deescalate." Prior to the retaliatory move, Wall Street weighed various scenarios after President Trump announced on Saturday that the US struck three Iranian nuclear facilities, including the threat of Iran closing the Strait of Hormuz, a critical chokepoint for oil flows. On Monday morning, President Trump posted on social media: "To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!" "The main reason for this stability is that energy infrastructure has largely been spared from direct attacks, with number of oil tankers transiting through the Strait of Hormuz remaining steady," JPMorgan's Natasha Kaneva and her team wrote on Monday morning. On Sunday, futures spiked after Iran's parliament voted to close the Strait of Hormuz, but the final decision rests with Iran's Supreme National Security Council and Supreme Leader Ayatollah Ali Khamenei. The oil market is now factoring in "a one-in-five chance of a material disruption in Gulf energy production flows, with potential for crude prices to reach the $120-130 range," Kaneva wrote. "Yet, beyond the short-term spike induced by geopolitics, our base case for oil remains anchored by our supply-demand balance, which shows that the world has enough oil," she added. She also noted that "with fewer reliable partners in the Middle East and limited regional appetite for a broader conflict, Iran faces a constrained set of options and a heightened set of risks as it deliberates its course of action." Other possible retaliatory moves from Iran could include supporting Yemen's Houthi rebels in renewed attacks on commercial shipping, or going after energy infrastructure in neighboring countries. If crude climbs into the $120 to $130 range, analysts predict gasoline and diesel prices could rise by as much as $1.25 per gallon. "Consumers would be looking at a national average gasoline price of around $4.50 per gallon — closer to $6.00 if you're in California," Lipow Oil Associates president Andy Lipow said in a Sunday note. The key issue isn't just the potential for supply disruption, but how long it lasts, Rebecca Babin, senior energy trader at CIBC Private Wealth, told Yahoo Finance on Sunday. "If infrastructure is hit but can be quickly restored, crude may struggle to hold gains," she said. "But if Iran's response causes lasting damage or introduces long-term supply risk, we're likely to see a stronger and more sustained move higher." Last week, JPMorgan analysts noted that since 1967 — aside from the Yom Kippur War in 1973 — none of the 11 major military conflicts involving Israel have had a lasting impact on oil prices. In contrast, events directly involving major regional oil producers, such as the first Gulf War in 1990, the Iraq War in 2003 and the imposition of sanctions on Iran in 2018, have all led to meaningful and sustained moves in oil markets. "During these episodes, we estimate that oil traded at a $7–$14 per barrel premium to its fair value for an extended period," JPMorgan's Kaneva wrote. They added that the most significant and lasting price impacts historically come from "regime changes" in oil-producing countries, whether that be through leadership transitions, coups, revolutions, or major political shifts. "While demand conditions and OPEC's spare capacity shape the broader market response, these events typically drive substantial oil price spikes, averaging a 76% increase from onset to peak," Kaneva wrote. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) had raised output in the months leading up to Israel's strike on Iran on June 13. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
20 hours ago
- Business
- Yahoo
Oil tanks nearly 6% as Iranian retaliation against US spares energy supply
Oil futures slid nearly 6% on Monday as Iran appeared to spare the energy market while the country launched missiles targeted at a US air base in Qatar in retaliation for US bombings on Iranian nuclear sites. Brent crude (BZ=F), the international benchmark, dropped to $72 per barrel. West Texas Intermediate (CL=F) also fell almost 6% to trade below $70 per barrel. The declines came after Iranian state media said it launched missile attacks against a US air base in Qatar, matching the number of bombs dropped by the US over the weekend, in a move the Associated Press said signaled "a likely desire to deescalate." Prior to the retaliatory move, Wall Street weighed various scenarios after President Trump announced on Saturday that the US struck three Iranian nuclear facilities, including the threat of Iran closing the Strait of Hormuz, a critical chokepoint for oil flows. On Monday morning, President Trump posted on social media: "To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!" "The main reason for this stability is that energy infrastructure has largely been spared from direct attacks, with number of oil tankers transiting through the Strait of Hormuz remaining steady," JPMorgan's Natasha Kaneva and her team wrote on Monday morning. On Sunday, futures spiked after Iran's parliament voted to close the Strait of Hormuz, but the final decision rests with Iran's Supreme National Security Council and Supreme Leader Ayatollah Ali Khamenei. The oil market is now factoring in "a one-in-five chance of a material disruption in Gulf energy production flows, with potential for crude prices to reach the $120-130 range," Kaneva wrote. "Yet, beyond the short-term spike induced by geopolitics, our base case for oil remains anchored by our supply-demand balance, which shows that the world has enough oil," she added. She also noted that "with fewer reliable partners in the Middle East and limited regional appetite for a broader conflict, Iran faces a constrained set of options and a heightened set of risks as it deliberates its course of action." Other possible retaliatory moves from Iran could include supporting Yemen's Houthi rebels in renewed attacks on commercial shipping, or going after energy infrastructure in neighboring countries. If crude climbs into the $120 to $130 range, analysts predict gasoline and diesel prices could rise by as much as $1.25 per gallon. "Consumers would be looking at a national average gasoline price of around $4.50 per gallon — closer to $6.00 if you're in California," Lipow Oil Associates president Andy Lipow said in a Sunday note. The key issue isn't just the potential for supply disruption, but how long it lasts, Rebecca Babin, senior energy trader at CIBC Private Wealth, told Yahoo Finance on Sunday. "If infrastructure is hit but can be quickly restored, crude may struggle to hold gains," she said. "But if Iran's response causes lasting damage or introduces long-term supply risk, we're likely to see a stronger and more sustained move higher." Last week, JPMorgan analysts noted that since 1967 — aside from the Yom Kippur War in 1973 — none of the 11 major military conflicts involving Israel have had a lasting impact on oil prices. In contrast, events directly involving major regional oil producers, such as the first Gulf War in 1990, the Iraq War in 2003 and the imposition of sanctions on Iran in 2018, have all led to meaningful and sustained moves in oil markets. "During these episodes, we estimate that oil traded at a $7–$14 per barrel premium to its fair value for an extended period," JPMorgan's Kaneva wrote. They added that the most significant and lasting price impacts historically come from "regime changes" in oil-producing countries, whether that be through leadership transitions, coups, revolutions, or major political shifts. "While demand conditions and OPEC's spare capacity shape the broader market response, these events typically drive substantial oil price spikes, averaging a 76% increase from onset to peak," Kaneva wrote. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) had raised output in the months leading up to Israel's strike on Iran on June 13. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Time of India
a day ago
- Business
- Time of India
US stock market today: Dow Jones, S&P 500, Nasdaq edge higher as fed hints at july rate cut and oil prices pull back after iran strike
US Stock Market Overview (June 23, 2025) Dow Jones Industrial Average (^DJI) : +0.1% : +0.1% S&P 500 (^GSPC) : +0.3% : +0.3% Nasdaq Composite (^IXIC) : +0.4% Current Nasdaq level: 19,534.85 (+87.44 points) as of 11:52 a.m. EDT : +0.4% Why did US stocks recover after a shaky start? Live Events Is the Federal Reserve really thinking about cutting rates soon? Inflation is cooling: Prices have been either falling or rising slower than expected. Spending is weakening: Consumer spending, a big part of the US economy, is starting to soften. Jobs market is looking fragile: There are signs that employment growth is losing steam. How are oil prices and energy markets reacting to the Iran conflict? Brent crude (BZ=F) hovered just above $76 per barrel WTI crude (CL=F) settled near $73, after falling more than 1% by midday 'EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING! YOU'RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON'T DO IT!' He added: 'To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!' Oil Market Reaction Oil futures spiked over +4% Sunday night after bombings after bombings Prices eased on Monday amid doubt about Iran's retaliation: Brent crude (BZ=F) : trading above $76/barrel WTI crude (CL=F) : around $73.39/barrel , down over 1% President Trump's on social media: 'EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING!' 'To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!' What else is happening in the markets right now? Gold prices (GC=F) nudged higher as investors stayed cautious. Gold often acts as a safe haven during global unrest. In the real estate world, Compass (COMP) filed a major antitrust lawsuit against Zillow (Z, ZG) in New York. Compass accused Zillow of blocking semi-private listings in a way that 'harms competition' and forces home sellers onto Zillow's platform, where the company earns money selling leads. 'The Zillow Ban is designed to make it hard, indeed nearly impossible, for home sellers to sell their home outside of Zillow.' Real Estate News – Compass vs Zillow Compass (COMP) filed a lawsuit against Zillow (Z, ZG) in New York Allegation: Zillow's ban on privately marketed listings is anti-competitive Compass claims Zillow is: 'Eliminating a new and innovative business model' 'Forcing all listings onto Zillow's platform' for lead generation profit filed a in New York Other Market Highlights Gold (GC=F) prices ticked higher as investors sought safety prices ticked higher as investors sought safety Investor sentiment remains cautious due to: Geopolitical risks Energy supply concerns Uncertainty around monetary policy remains cautious due to: What's next for US stocks? What will Iran do next? Will the Fed actually cut rates in July? Could another surprise from Trump or oil markets change the mood again? FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel US stocks edged higher on Monday as investors reacted to a mix of falling oil prices, global conflict fears, and new signs that the Federal Reserve might cut interest rates as early as July. The stock market opened in the red after President Donald Trump confirmed a military strike on Iran's nuclear sites, but by midday, things turned around — thanks to a key Fed official signaling a more flexible monetary approach Dow Jones Industrial Average (^DJI) rose 0.1%, the S&P 500 (^GSPC) gained 0.3%, and the Nasdaq Composite (^IXIC) led the pack with a 0.4% jump. As of 11:52 a.m. EDT, the Nasdaq was at 19,534.85, up 87.44 Jones Industrial Average climbed nearly 200 points. Investors took in a whirlwind of headlines—from fresh US military strikes on Iran's nuclear facilities to fluctuating oil prices and global economic warnings. Despite rising geopolitical risks, oil reversed its early gains, and major US stock indices showed story began with tension in the Middle East. Over the weekend, President Trump announced that the US had bombed three of Iran's key nuclear enrichment facilities, claiming they were 'totally obliterated.' This move came after Israel's recent military actions, pulling the US deeper into the region's ongoing were initially spooked. The big fear? That Iran might retaliate by closing the Strait of Hormuz, a vital shipping route for around 20% of the world's oil supply. That could push global energy prices even higher and hurt the global those fears calmed down on Monday. While Iran's parliament voted to support blocking the Strait, top leaders haven't made an official move. That uncertainty gave investors some breathing room, and the focus quickly shifted to the Federal Reserve's next — and that's what gave the market a Bowman, a governor at the Federal Reserve, said in a speech Monday that the Fed might be ready to cut interest rates 'as soon as July.' She's the second top official in recent days to say that pointed to several reasons for a rate cut:If the Fed lowers rates, borrowing becomes cheaper. That's good news for businesses and people with loans — and it often gives the stock market a after Trump's announcement, oil futures jumped more than 4% on fears of supply disruption. But on Monday, those prices started to come down again:President Trump also stepped in to try to control the energy narrative. On social media, he posted:The message was loud and clear: Trump wants more oil supply — and lower energy prices — heading into an uncertain are a few more key moves and stories developing:According to the lawsuit:This case could reshape how home listings are shared online, and it marks a sharp escalation in the rivalry between these two geopolitical tensions, Fed policy decisions, and commodity prices all in play, investors are in a wait-and-watch now, the focus is split:One thing's for sure — the market is on edge. But for now, investors are leaning on hopes of a Fed rate cut and signs that the Middle East tensions haven't spun out of control just Jones edged up 0.1% as tensions eased and Fed rate cut hopes Governor Michelle Bowman signaled support for a July rate cut.
