Oil rises and Europe's markets open lower after US strikes on Iran
Investors reacted to US strikes on Iran over the weekend as Iran and Israel continued to trade missile fire on Monday morning.
The price of Brent crude oil rose around 1.53% to $78.19 a barrel as of around 7.15 CEST, while WTI rose 1.48% to $74.93 a barrel.
On Sunday, US forces attacked three Iranian nuclear and military sites, stating that Tehran must not be allowed to possess a nuclear weapon.
President of Iran Masoud Pezeshkian said that the country "will never surrender to bullying and oppression", while Iranian foreign minister Abbas Araghchi has arrived in Moscow for talks with Russian president Vladimir Putin.
European markets opened in the red on Monday as investors digested the news.
The FTSE 100 was down 0.28% to 8,749.98, the CAC 40 fell 0.66% to 7,539.68, the DAX slipped 0.55% to 23,222.90, while the FTSE MIB dropped 0.97% to 38,852.55.
The STOXX 600 fell 0.28% to 535.03 while the EURO STOXX 50 dropped 0.26% to 5,220.02.
Over in the US, futures for the S&P 500 slipped 0.13% to 6,010.25 and Dow Jones Industrial Average futures dropped 0.2% to 42,431.00. Nasdaq futures fell 0.18% to 21,804.50 on Monday morning.
In Asian trading, Tokyo's Nikkei 225 index fell 0.19% to 38,331.12, the Kospi in Seoul dropped 0.3% to 3,012.88, and Australia's S&P/ASX 200 declined 0.37% to 8,474.40.
Hong Kong's Hang Seng and the Shanghai Composite Index were in positive territory, with respective gains of 0.35% to 23,611.68 and 0.13% to 3,364.29.
Related
Energy in Europe is also at stake as Israel-Iran conflict escalates
Israel-Iran conflict fuels best month for energy stocks since 2022
The conflict, which flared up after an Israeli attack against Iran on 13 June, has sent oil prices higher linked to Iran's status as a major oil producer.
The nation is also located on the narrow Strait of Hormuz, through which much of the world's crude oil passes.
Investors are concerned that Tehran might decide to bomb oil infrastructure in neighbouring countries or block tankers from travelling through the Strait of Hormuz.
Shipping company Maersk said on Sunday that it was continuing to operate through the strait, adding: "We will continuously monitor the security risk to our specific vessels in the region and are ready to take operational actions as needed."
According to vessel tracking data compiled by Bloomberg, two supertankers Coswisdom Lake and South Loyalty U-turned in the Strait of Hormuz on Sunday.
The situation now hinges on whether Tehran decides to opt for aggression or a more diplomatic response to US and Israeli strikes.
Iran could attempt to close the waterway by setting mines across the Strait or striking and seizing vessels. Even so, this would likely be met by a forceful response from the US navy, meaning the oil price spike may not be sustained.
Some analysts also think Iran is unlikely to close down the waterway because the country uses it to transport its own crude, mostly to China, and oil is a major revenue source for the regime.
If Tehran did successfully close the Strait, this would cause a wider price spike for transported goods and complicate the deflationary process in the US, potentially keeping interest rates higher for longer.
On Monday morning, Trump also floated the possibility of regime change in Iran.
"If the current Iranian regime is unable to make Iran great again, why wouldn't there be regime change?" said the US president on Truth Social.
Vice president J.D. Vance had commented earlier that the administration did not seek regime change in Iran.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
10 minutes ago
- CBS News
Department of Justice files lawsuit against Los Angeles, Mayor Bass over sanctuary city policies
The Department of Justice has filed a lawsuit against Mayor Karen Bass and the city of Los Angeles over sanctuary city policies, claiming they "interfere with the federal government's enforcement of its immigration laws," the department says. In the lawsuit, the DOJ alleges that days after President Trump won the November 2024 election, the city of LA and its officials worked to "thwart the will of the American people" by beginning to codify sanctuary city policies into law. The DOJ claims that LA's sanctuary city ordinance, Prohibition of the Use of City Resources for Federal Immigration Enforcement, signed by Bass on Dec. 9, 2024, prevents Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection agents from carrying out their obligations under federal law. "Today's lawsuit holds the City of Los Angeles accountable for deliberately obstructing the enforcement of federal immigration law," said U.S. Attorney Bill Essayli for the Central District of California. "The United States Constitution's Supremacy Clause prohibits the City from picking and choosing which federal laws will be enforced and which will not." Court documents name the city of Los Angeles, Mayor Karen Bass, the Los Angeles City Council and Council President Marqueece Harris-Dawson as the defendants. CBS Los Angeles has reached out to Bass, Dawson and the city attorney for a comment and is awaiting a response. The lawsuit adds that the U.S. is currently facing a "crisis of illegal immigration" and claims the government's efforts to address the crisis are "hindered" by LA's sanctuary city policies. The lawsuit comes weeks after immigration operations across Southern California began ramping up, prompting demonstrations that mainly started peacefully but escalated into clashes between protestors and law enforcement. As a result, Mr. Trump ordered members of the National Guard and U.S. Marines to deploy to the region. A section of downtown LA was also affected by the violent demonstrations, including businesses being looted and public property being vandalized. Bass issued a curfew for a portion of downtown, which was lifted seven days after when safety conditions started to improve.
CBS News
10 minutes ago
- CBS News
San Mateo County Sheriff Christina Corpus indicted for alleged conflict of interest, retaliation
The civil grand jury in San Mateo County has indicted embattled Sheriff Christina Corpus for alleged misconduct, prosecutors announced Monday, as she faces potential removal by the Board of Supervisors. District Attorney Steve Wagstaffe's office said the grand jury on Friday returned an accusation against Corpus that includes one count of conflict of interest in violation of the County Charter. The conflict of interest allegation stems from the hiring of Victor Aenlle, whom she allegedly had a close personal relationship with. The grand jury also accused Corpus of three counts of retaliation over the termination of Assistant Sheriff Ryan Monaghan, the transfer of Capt. Brian Phillip and the arrest of Deputy Carlos Tapia, who is the president of the Deputy Sheriff's Association. Prosecutors said the grand jury returned an indictment following a month-long hearing in which 32 people, including Corpus, testified under oath. The hearing was conducted by Wagstaffe's office, which acted as an advisor to the civil grand jury. Corpus has been facing months of scrutiny and calls to resign following the release of an independent report by retired judge LaDoris Cordell into allegations of abuse of power at the sheriff's office. Following the report, the Board of Supervisors called for a special election to temporarily amend the charter to remove a sheriff from office for cause. In March, 84% of voters approved the charter amendment. Earlier this month, the board initiated the process to remove Corpus from office, a process which is expected to take several months. The sheriff has repeatedly denied the allegations against her and has refused multiple calls to resign from local leaders and the Deputy Sheriffs' Association. Corpus has also filed a $10 million lawsuit against the county alleging discrimination and harassment. Prosecutors said Corpus is scheduled to appear in court on July 15 to answer the accusation, in which she is entitled to a trial by jury.
Forbes
12 minutes ago
- Forbes
The Cyber Risk SMBs Can't Afford To Ignore
AI-driven threats are rewriting the rulebook. Here's the new cybersecurity playbook every small business must adopt before it's too late June just marked National Cybersecurity Education Month, an effort to raise awareness and expand the cybersecurity workforce. While public understanding is growing, so is the scale and sophistication of attacks. In the age of AI, threats no longer target only governments and large organizations. Cyberattacks now strike in unexpected places, putting individuals, SMBs, and entire systems at risk. Awareness alone isn't enough. Are we prepared? A recent conference held at Nasdaq by the Digital Evolution Institute explored the digital fabric comprising AI, data, and cybersecurity, and put a fascinating spotlight on the growing and unexpected risks and consequences. Byron Loflin, Nasdaq Board Excellence Center at the conference Digital Evolution Institute founder Julia Valentine stressed throughout the conference the shift from cyber crises as technical incidents to business and leadership-level challenges, and explained why being proactive in cyber crisis preparedness is no longer a luxury but a must-have. Cyber risk is a business risk Valentine, Presidential Lifetime Achievement Award recipient, entrepreneur, and a long time investor, is also the founder of AlphaMille, a global technology consulting firm specializing in digital and physical security, stressed at the conference that 'Companies cannot look to the government to protect them from cyberattacks in the AI era. Digital exposure should be treated as any other initiative that creates revenue, reduces cost, and mitigates risk,' she said, offering a familiar example from 2021, when R.R. Donnelley & Sons (RRD), a global provider of business communication and marketing services, which went through a ransomware attack that exposed sensitive client data. In 2024, the SEC reached a $2.125 million settlement with RRD for violating the internal controls and disclosure controls provisions of federal securities laws. As part of remediation, RRD revised incident response policies and procedures, adopted new cybersecurity technology and controls, updated employee training, and increased cybersecurity personnel headcount - all basic cybersecurity measures that shareholders increasingly expect to be put in place as a normal course of business. 'The 'R.R. Donnelley' case was a wake-up call,' Valentine now says. 'Despite being a data-intensive company, they missed key warning signs. This cost them millions and damaged client trust. Overlooking cybersecurity doesn't just increase risk; it sets a company up for sudden and devastating failure.' Presidential Lifetime Achievement Award recipient, entrepreneur, and a long time investor, Julia ... More Valentine at the conference. While awareness is supposedly on the rise, cybercrime losses have been steadily increasing, and projections indicate a continued upward trend. Globally, cybercrime costs are projected to reach $10.5 trillion annually by 2025, according to Cybersecurity Ventures. The annual cost of cybercrime in the U.S. alone is estimated to be around $639 billion in 2025. According to Valentine, three things need to happen to change the trend: 'Cybersecurity needs to be elevated to the board level. The board needs to calibrate the right amount of information it needs for effective oversight, and the company needs to right-size its cybersecurity defenses.' During the conference, broad discussions by key industry leaders explored this shift in priorities from multiple angles. 'As fiduciaries, we are now responsible for the resilience of our organizations, not just our balance sheets.' From a management and board perspective, it was made clear that the change starts there: 'Cybersecurity must be viewed not as an IT expense, but as a strategic differentiator. Boards need fluency in incident response, third-party risk, threat intelligence, and yes, a solid recovery plan. Because a breach today is no longer just a technical failure, it's a governance failure.' SMBs Are Losing the Battle to Cybercrime In today's digital economy, small and midsize businesses (SMBs) are no longer flying under the radar of cybercriminals. In fact, they've become prime targets. According to recent industry reports, nearly 60% of SMBs experience a cyberattack each year. 'Many SMBs operate under the dangerous assumption that they're too small or insignificant to attract cybercriminals,' she says. 'In reality, attackers often see SMBs as low-hanging fruit, companies with valuable data but weaker defenses. Whether it's financial records, employee data, or client information, your business is a digital goldmine to hackers.' Many small businesses are at serious risk without realizing it. Common signs include not using multi-factor authentication, not knowing what systems or tools are in use, and ignoring alerts or phishing emails. Relying on basic IT support, skipping regular backups, running outdated software, and lacking a clear response plan all leave the door open to attacks. Even being denied cyber insurance can be a red flag. So beyond misconceptions, what's actually preventing SMBs from getting the protection they need? Valentine outlines five practical barriers that prevent SMBs from getting the cybersecurity protection they need: Cyber protection is not out of reach. SMBs need focused, outsourced, and staged solutions, not bloated enterprise packages. "SMBs must treat cybersecurity like a business imperative." With the different views discussed at the conference, a new 'playbook' was created with the critical steps each business, big and small, must take. Valentine is now outlining The New Cybersecurity Playbook for SMBs: 7 Essential Steps: 'Cybersecurity is a boardroom concern and a business imperative,' she concludes. 'A modern, tested cyber playbook is the best line of defense.'
