economy
Oil prices plunge and Europe’s markets rally after Trump calls off Iran strikes
Brent crude drops by 5% after US president claimed talks on Middle East peace deal would resume
TL;DR
- Crude oil prices, including Brent crude and US West Texas Intermediate, fell sharply after Trump cancelled planned strikes on Iran.
- Global oil benchmarks had previously jumped over 20% in July due to renewed fighting between the US and Iran and attacks on tankers.
- Trump claimed Iran and other Middle Eastern countries requested time for a deal to reopen the Strait of Hormuz and end Iran's nuclear threat, though Tehran denied this.
- Fuel prices for UK motorists continued to rise, with petrol and diesel reaching new highs.
- European shares rose, and US stock futures pointed to a higher open on Wall Street.
- US Treasuries increased, pushing the yield on the benchmark 10-year bond down.
- Opec+ agreed to increase oil production by about 188,000 barrels a day from September.
- The Japanese yen hit a three-month high after joint intervention by Tokyo and Washington.
- Analysts expressed concern about the potential for the situation to revert to conflict if hopes for a deal collapse.