Trump’s Iran strike comments shake markets, Brent crude hits two-week high
✓Travel stocks plunged as fuel costs rose, United Airlines fell 3 percent, while energy stocks saw gains.
Global markets fell, and oil prices surged after United States President Donald Trump lashed out against Iran, saying that the memorandum of understanding signed with Iran to end the conflict was “over” and warning that the US would likely carry out additional strikes on Wednesday night following attacks the previous day.
On Wall Street, all major indices opened lower on the heels of the president’s remarks. The Dow is down 0.8 percent, the tech-heavy Nasdaq is down 0.2 percent, and the S&P 500 is down 0.5 percent.
The international benchmark Brent crude is up 4.2 percent to $77.24 a barrel, the highest in two weeks.
“We’re going to hit them hard tonight,” Trump told reporters at the NATO summit in Turkiye before his meeting with Ukrainian President Volodymyr Zelenskyy, adding that it “may be a big attack”.
Oil prices had been dropping in the last few weeks, down from a $126-a-barrel high in late April, amid a looming deal in mid-June to end the war and allow energy resources to flow through the key Strait of Hormuz, through which roughly a fifth of the world’s oil travels.
On the heels of the agreement in June, Trump promised that petrol prices for US consumers would “drop like a rock”, and prices did begin to decline. After a $4.48 per gallon ($1.18 per litre) high in May, prices have now hit $3.79 per gallon ($1.00 per litre), according to the American Automobile Association (AAA), which tracks daily petrol prices. It is still well above the $2.98 per gallon ($0.78 per litre) on February 28 when the US and Israel first struck Iran, but analysts say cuts on fuel prices are at risk.
“The peace agreement between the US and Iran is the key risk in the second half of this year. It will determine whether the global economy gets an energy-driven disinflation tailwind or absorbs a second oil shock. Recent developments highlight that it’s the key domino that will determine whether other risks are amplified or dampened,” Ryan Sweet, chief global economist at Oxford Economics, said in remarks provided to Al Jazeera.
“Anytime we hit Iran, oil goes up a little bit,” Trump told reporters.
Trump, however, also stressed that the US has heightened production of oil stateside.
“We are producing more oil than Russia and Saudi Arabia combined,” Trump told reporters.
US Treasury Secretary Scott Bessent on Wednesday echoed his remarks, saying that he thinks US oil should potentially trade at a premium to the rest of the world.
At the NATO summit, Trump was asked if the MoU to end that war was over, to which he replied that he thinks so, saying, “I don’t want to deal with them.”
His comments follow the Iranian Revolutionary Guard Corps’ statement that they targeted US military sites in Bahrain and Kuwait in response to a wave of US strikes across Iran following attacks on tankers in the Strait of Hormuz. The US also revoked a licence allowing Iran to sell oil.
“It goes without saying that the tide change in the oil sector risks fully retracing back to the March/April peaks if the latest escalation leads to attacks on Iranian infrastructure and renewed uncertainty regarding stability in the region,” Ian Lyngen, head of US rates strategy at BMO Capital Markets, told the Reuters news agency.
Travel stocks took a hit amid looming higher fuel prices. United Airlines tumbled 3 percent, Southwest Airlines by 2 percent, and Delta Airlines by 2.4 percent.
On the other hand, as oil prices jumped, so did energy stocks. ConocoPhillips ticked up 1.8 percent. Chevron was not far behind, rising 1.5 percent, and ExxonMobil followed with a 1.4 percent jump.
Gold prices tumbled as well. Spot gold dropped 0.8 percent to $4,072.69 per ounce after hitting its lowest level since 2 July earlier in the session. US gold futures for August delivery slipped 1.8 percent to $4,083.20 per ounce.
Read the full story at Al Jazeera ↗ · Axios ↗
Following remarks by US President Donald Trump indicating the end of a US-Iran agreement and warning of military action, global markets moved lower while oil prices climbed. Brent crude increased 4.2% to $77.24 per barrel, reaching a two-week high. Major US stock indices opened down—the Dow fell 0.8%, the S&P 500 dropped 0.5%, and the Nasdaq declined 0.2%. Travel stocks declined notably, with United Airlines falling 3%, Southwest 2%, and Delta 2.4%, reflecting concerns over rising fuel costs. Energy stocks conversely gained, with ConocoPhillips up 1.8%, Chevron up 1.5%, and ExxonMobil up 1.4%. US petrol prices currently stand at $3.79 per gallon, down from May highs of $4.48 but still substantially above February levels. Gold prices declined 0.8%, suggesting reduced safe-haven demand. The market movements follow escalating US-Iran tensions and prior agreements aimed at stabilizing regional energy supplies.
Read the full story at Al Jazeera ↗ · Axios ↗
Travel stocks plunged as fuel costs rose, United Airlines fell 3 percent, while energy stocks saw gains.
Global markets fell, and oil prices surged after United States President Donald Trump lashed out against Iran, saying that the memorandum of understanding signed with Iran to end the conflict was “over” and warning that the US would likely carry out additional strikes on Wednesday night following attacks the previous day.
On Wall Street, all major indices opened lower on the heels of the president’s remarks. The Dow is down 0.8 percent, the tech-heavy Nasdaq is down 0.2 percent, and the S&P 500 is down 0.5 percent.
The international benchmark Brent crude is up 4.2 percent to $77.24 a barrel, the highest in two weeks.
“We’re going to hit them hard tonight,” Trump told reporters at the NATO summit in Turkiye before his meeting with Ukrainian President Volodymyr Zelenskyy, adding that it “may be a big attack”.
Oil prices had been dropping in the last few weeks, down from a $126-a-barrel high in late April, amid a looming deal in mid-June to end the war and allow energy resources to flow through the key Strait of Hormuz, through which roughly a fifth of the world’s oil travels.
On the heels of the agreement in June, Trump promised that petrol prices for US consumers would “drop like a rock”, and prices did begin to decline. After a $4.48 per gallon ($1.18 per litre) high in May, prices have now hit $3.79 per gallon ($1.00 per litre), according to the American Automobile Association (AAA), which tracks daily petrol prices. It is still well above the $2.98 per gallon ($0.78 per litre) on February 28 when the US and Israel first struck Iran, but analysts say cuts on fuel prices are at risk.
“The peace agreement between the US and Iran is the key risk in the second half of this year. It will determine whether the global economy gets an energy-driven disinflation tailwind or absorbs a second oil shock. Recent developments highlight that it’s the key domino that will determine whether other risks are amplified or dampened,” Ryan Sweet, chief global economist at Oxford Economics, said in remarks provided to Al Jazeera.
“Anytime we hit Iran, oil goes up a little bit,” Trump told reporters.
Trump, however, also stressed that the US has heightened production of oil stateside.
“We are producing more oil than Russia and Saudi Arabia combined,” Trump told reporters.
US Treasury Secretary Scott Bessent on Wednesday echoed his remarks, saying that he thinks US oil should potentially trade at a premium to the rest of the world.
At the NATO summit, Trump was asked if the MoU to end that war was over, to which he replied that he thinks so, saying, “I don’t want to deal with them.”
His comments follow the Iranian Revolutionary Guard Corps’ statement that they targeted US military sites in Bahrain and Kuwait in response to a wave of US strikes across Iran following attacks on tankers in the Strait of Hormuz. The US also revoked a licence allowing Iran to sell oil.
“It goes without saying that the tide change in the oil sector risks fully retracing back to the March/April peaks if the latest escalation leads to attacks on Iranian infrastructure and renewed uncertainty regarding stability in the region,” Ian Lyngen, head of US rates strategy at BMO Capital Markets, told the Reuters news agency.
Travel stocks took a hit amid looming higher fuel prices. United Airlines tumbled 3 percent, Southwest Airlines by 2 percent, and Delta Airlines by 2.4 percent.
On the other hand, as oil prices jumped, so did energy stocks. ConocoPhillips ticked up 1.8 percent. Chevron was not far behind, rising 1.5 percent, and ExxonMobil followed with a 1.4 percent jump.
Gold prices tumbled as well. Spot gold dropped 0.8 percent to $4,072.69 per ounce after hitting its lowest level since 2 July earlier in the session. US gold futures for August delivery slipped 1.8 percent to $4,083.20 per ounce.
Read the full story at Al Jazeera ↗ · Axios ↗
Trump stated the US-Iran memorandum of understanding was 'over' and indicated the US would conduct additional strikes Brent crude rose 4.2% to $77.24 per barrel, its highest level in two weeks The Dow declined 0.8%, the S&P 500 fell 0.5%, and the Nasdaq dropped 0.2% United Airlines fell 3%, Southwest Airlines fell 2%, and Delta Airlines fell 2.4% ConocoPhillips rose 1.8%, Chevron rose 1.5%, and ExxonMobil rose 1.4% US petrol prices stand at $3.79 per gallon, down from $4.48 in May but above $2.98 on February 28 Oil prices had declined in recent weeks from a $126 per barrel high in late April amid expectations of a regional peace agreement The Iranian Revolutionary Guard Corps targeted US military sites in response to prior US strikes The peace agreement between the US and Iran is the key risk determining whether the global economy experiences energy-driven disinflation or absorbs a second oil shock Recent escalation risks fully retracing oil prices back to March/April peaks if attacks on Iranian infrastructure occur
Read the full story at Al Jazeera ↗ · Axios ↗
- Trump stated the US-Iran memorandum of understanding was 'over' and warned of additional strikes, prompting market volatility
- Brent crude rose 4.2% to $77.24/barrel, its highest in two weeks, as oil prices surged on geopolitical uncertainty
- US stock indices declined across the board; travel stocks fell while energy stocks gained amid rising fuel costs
- Petrol prices have fallen from May highs but remain elevated; analysts warn further escalation could reverse recent gains
- Trump emphasized US oil production exceeds Russia and Saudi Arabia combined