Oil prices cut losses amid suspicion of Israel-Iran’s ceasefire | Oil

Oil prices withdraw losses after a sharp drop triggered between Donald Trump’s announcement of a ceasefire Israel Iran is confused about the doubts about whether the truce will hold.

Donald Trump Write On the truth social platform Tuesday morning: “There has been fully agreed between Israel and Iran that there will be a complete and complete ceasefire.” Israel then confirmed that it has “consented” to the proposal.

In response, the global benchmark Brent crude fell the next day, initially falling more than 5% to $67.65 (£49.83), after a 7% drop on Monday.

However, the price fell 3% at $69.21 a barrel late Tuesday, its lowest since June 12. Israeli army says it found another Iranian elastic force According to Reuters, Iranian media rejected several hours after the ceasefire began. Israeli Defense Minister Katz said Israel will “react strongly.”

News of the ceasefire has cancelled the financial market. In London, the FTSE 100 is 0.3% higher, while Germany’s DAX has risen by nearly 2%. In Asia, Japan’s Nikkei climbed 1.1%, while Hong Kong’s Hang Seng rose 2.1%.

“The protocol initially looked stable, but it was still a very smooth situation,” said Kathleen Brooks, director of research at XTB. [Israel Defense Forces] This morning, the missiles were announced from Iranwhich caused oil prices to mitigate losses as Brent’s crude oil returned to $70 a barrel.

“In the past month, Brent crude has pooled nearly 20% over the past month as the war premium has been linked to oil prices and has now been unblocked. But if there are more signs that the ceasefire is not being held, we can see oil prices resume their upward trend.”

Airline and travel stocks have increased in news of the ceasefire, with shares in KLM, British Airways owner IAG, Hungary’s Wizz Air and Germany’s Lufthansa rising 5% to 8% in early trading. Europe’s largest travel agency TUI jumped 8%, while InterContinental Hotels rose 3.5%, and French hotel company ACCOR rose 6%.

Despite the ceasefire news, airlines are continuing to stop some flights to the Middle East due to safety concerns. The BA has suspended all flights to Doha until June 25, and budget airline Wizz Air canceled flights to and from the United Arab Emirates until June 30.

British travel company Saga reported that its ocean and river cruise companies had a strong start this year and said they were not affected by the Middle East conflict. It does not offer cruises in the area and only sells holidays to Jordan and Egypt.

Oil stocks took a hit, with Shell losing 3.5% in London and BP down 4.8%.

Iran’s operation against Qatar’s (Al-udeid) air base on Monday proposed that it hoped that the conflict would not immediately undermine oil supply in the region. No casualties were reported after the strike, which the US Department of Defense described as “main symbolic” after the US Bombing three nuclear sites Saturday in Iran.

“The risky assets have re-emerged on the menu after President Trump announced a ceasefire between Israel and Iran. These details may be a little excited in the air, but the global stock market has become higher and higher as a result.

“Iran’s telegraphed retaliation against the US had already been taken as a sign that de-escalation was the most likely path forward, which had helped lift US stocks, and the rally has extended. Traders have arguably been betting on this outcome for a while. Despite the turmoil over the weekend, oil prices were quick to shift into reverse – an early signal that markets were betting on de-escalation sooner rather than later. Iran’s response notably refrained targets any oil facility or the important straits of Hormuz.”

“Lower oil prices are a key component in keeping inflation down, and the Fed will focus on that when considering whether to lower interest rates at its next meeting in July,” he added.

U.S. stocks also rose slightly on Monday, with the benchmark S&P 500 gaining nearly 1% and the Dow Jones industrial average up 0.9%.

Chris Beauchamp, chief market analyst at online platform IG, said: “There are still obstacles, most notably the trade deal deadline on July 8, but for now, the market believes there will be some kind of fresh expansion.

“The fall oil price temporarily negates some inflation concerns, with the sum of the two federal governments calling for lower tax rates continuing to support risky assets.”

Iranian parliament Voting to close Hormuz Strait – Every day, more than one-fifth of the global oil supply, with most of its liquefied gas passing – it remains open to date.