Oil price falls back on Israel-Iran ceasefire
The cost of Brent oil fell by 4% in morning trading on Tuesday, settling at around 69 US dollars a barrel, having jumped to a five-month high on Monday.
London's FTSE 100 Index also rebounded higher, up 40.5 points or 0.5% to 8798.5 in early trade following overnight gains in Asia, with Japan's Nikkei 225 up 1.1% and the Hang Seng in China ahead 0.7%.
Investors were breathing a sigh of relief after US President Donald Trump announced a ceasefire had been brokered between Israel and Iran.
The pound also rose, up 0.4% at 1.36 US dollars and 0.3% higher at 1.17 euros after both Iran and Israel confirmed they had agreed to stop fighting.
Brent crude had shot up in price in recent days on the escalating conflict, with worries that Iran might seek to block oil being shipped through the all-important Strait of Hormuz.
Panmure Liberum experts estimated that Brent crude could peak at 100 dollars (£74.43) a barrel thanks to severe disruption of the crucial waterway route, which they warned would send inflation soaring and hit stock markets hard.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: '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 from targeting any oil facilities or the important Strait of Hormuz, and the jump in prices over the past few days has mostly been erased now, positive news for the US administration and investors alike.
'Lower oil prices are a key component to keep inflation down and something the US Fed will have one eye on when thinking about whether to cut interest rates at the next meeting in July.'
Among stocks in London, blue chip oil giants BP and Shell saw recent gains reversed on the crude price fall, down 5% and 4% respectively, which held back gains on the wider FTSE 100.
Defence stocks were also lower, with aerospace group BAE Systems off 2%.
But Kathleen Brooks, research director at XTB cautioned it was 'still a very fluid situation'.
She said: 'Brent crude had rallied nearly 20% in the past month as a war premium was attached to the price of oil, which is now being unwound.
'However, if there are more signs that the ceasefire is not holding, we could see the oil price resume its uptrend.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
an hour ago
- Daily Mail
Trump FINALLY gets a question he respects as president grins from ear-to-ear after big week on Wall Street
Donald Trump gushed over a reporter's question about whether he 'outsmarted' the financial markets with his industry-shaking tariffs. The president grinned from ear-to-ear as a reporter asked him for his reaction to Apollo Global Management chief economist Torsten Sløk saying Trump may have 'outsmarted everyone' with his tariffs. 'Mr. President, a leading global economist just did a one-eighty and says your tariff plan, you may have outsmarted everybody with it. What is your message?' the reporter asked. Trump smiled as he responded: 'I love this. I love this question. This is the favorite. This is the best question I've ever been asked because I've been going through abuse for years on this. 'Because, as you know, we're taking in hundreds of billions of dollars, no inflation whatsoever.' The reporter added in a follow-up question for Trump's 'message to critics who think your tariff plan caused a recession?' 'I think they should go back to business school,' Trump responded. 'It's so obvious. It's so obvious. I mean, we're taking in billions and billions of dollars from China and a lot of other countries.' It came as Wall Street continued its recent rally this week, with the S&P500 and Nasdaq hitting all-time closing highs on Friday. In Sløk's report that Trump appeared to enjoy, the economist speculated that Trump would keep tariffs below his most aggressive rates to ease market uncertainty while using them as leverage to get better trade deals. 'Maybe the strategy is to maintain 30% tariffs on China and 10% tariffs on all other countries and then give all countries 12 months to lower nontariff barriers and open up their economies to trade,' he wrote. The report came as Trump's 90-day pause on 'reciprocal tariffs' is set to come to an end early next month. Sløk said that Trump should consider extending the deadline to a whole year, which he said would give the global markets time to adjust to a 'new world with permanently higher tariffs.' 'This would seem like a victory for the world and yet would produce $400 billion of annual revenue for US taxpayers,' he said. 'Trade partners will be happy with only 10% tariffs and U.S. tax revenue will go up. 'Maybe the administration has outsmarted all of us.' Trump shocked the global markets in April as he introduced a raft of 'Liberation Day' tariffs, but the gamble may have paid off as markets soared in recent weeks and the US signed a number of trade deals with foreign nations The soaring stock market numbers came as trade deal hopes fueled investor risk appetite and economic data helped solidify expectations for rate cuts from the U.S. Federal Reserve. The rise came even after Trump terminated trade negotiations with Canada in response to its digital tax on technology companies. 'This market's been pretty resilient,' said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. 'Investors are riding momentum and looking for breakouts.' 'They don't want to get caught on the wrong side of this thing,' Carlson added. 'Many investors already have missed out. And now you have the S&P flirting with an all-time high.' While tariffs have yet to affect price growth, inflation continues to hover above the Fed's 2% annual inflation target. A separate report from the University of Michigan confirmed consumer sentiment has improved this month, but remains well below December's post-election bounce. Financial markets have priced in a 72% likelihood that the Fed will implement its first rate cut of the year in September, with a smaller, 21% probability of a rate cut coming as soon as July, according to CME's FedWatch tool. Washington and Beijing reached an agreement to expedite rare-earth shipments to the U.S., a White House official said, well ahead of the July 9 expiration of the 90-day postponement of U.S. President Donald Trump's "reciprocal" tariffs. Additionally, Treasury Secretary Scott Bessent said the Trump administration's trade deals with 18 of the main U.S. trading partners could be done by the September 1 Labor Day holiday.
The Guardian
3 hours ago
- The Guardian
Trump news at a glance: fate of president's ‘big, beautiful bill' in doubt amid Senate vote
US senators on Saturday were scrambling to open debate on Donald Trump's 'big, beautiful' budget bill, which is key to the president's second-term agenda. The bill cannot advance to the House until a debate is held and a final vote on the legislation passes the Senate. But Republicans have been divided by the controversial bill, with some rejecting the proposal to cut welfare programmes in order to cover tax breaks, and others demanding deeper cuts. After the procedural vote to move to a floor debate on the measure opened on Saturday evening, several Republican had voted against it, putting pressure on the remaining holdouts to toe the party line. Meanwhile, the tech billionaire Elon Musk has again voiced criticism of bill, describing it as 'utterly insane and destructive'. Here are the key stories at a glance: A vote in the US Senate, on whether or not to open debate on Donald Trump's package of tax breaks, spending cuts and bolstered deportation funds, formally titled 'the One Big Beautiful Bill Act', stalled for hours on Saturday, as Republicans inclined to vote against the measure were pressured to support it. Soon after the vote opened at 7.30pm local time in Washington, three Republican senators joined all 47 Democrats to vote against the bill, meaning the remaining 50 Republican senators all needed to vote in favor to give vice-president JD Vance the chance to cast the tie-breaking vote and clear the procedural hurdle. Read the full story The billionaire tech entrepreneur Elon Musk on Saturday criticized the latest version of Donald Trump's sprawling tax and spending bill, calling it 'utterly insane and destructive'. 'The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!' Musk wrote on Saturday. Read the full story The Democratic former Minnesota state house speaker Melissa Hortman was honored for her legislative accomplishments and her humanity during a funeral on Saturday that was attended by Joe Biden and Kamala Harris. The former president and vice-president were joined by more than 1,000 other mourners. Read the full story Eric Trump has hinted that he or another of the Trump family could run for president when his father's second term in the White House comes to an end. Eric, who is co-executive vice-president of the Trump Organization, said, the road to the White House 'would be an easy one' if he decided to follow in his father's footsteps. Read the full story Police in southern California arrested a man suspected of posing as a federal immigration officer this week, the latest in a series of such arrests, as masked, plainclothes immigration agents are deployed nationwide to meet the Trump administration's mass deportation targets. Read the full story The son of an American citizen and military veteran – but who has no citizenship to any country – was deported from the US to Jamaica in late May. Jermaine Thomas's deportation, recently reported on by the Austin Chronicle, is one of a growing number of immigration cases involving military service members' relatives or even veterans themselves who have been ensnared in the Trump administration's mass deportation program. Read the full story Two men face spending their lives in prison after a federal judge sentenced them for their roles in the deaths of 53 people found dead in an abandoned tractor-trailer in Texas in 2022. The sudden loss of key US satellite data could send hurricane forecasting back 'decades', scientists say. Mark Zuckerberg's secret list of top AI talent to poach has the tech world atwitter. Catching up? Here's what happened on 27 June 2025.
Daily Mail
8 hours ago
- Daily Mail
Elon Musk blasts new version of Trump's spending bill as 'utter madness'
Elon Musk reignited his feud with Donald Trump as he tore into the president's spending bill in a blistering social media tirade. The world's richest man condemned Trump's 'Big Beautiful Bill' as 'utter madness', hours before Senate Republicans are expected to hold an initial vote on the latest version of the bill on Saturday afternoon. 'The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country,' Musk wrote in one of his X posts. 'Utterly insane and destructive. It gives handouts to industries of the past while severely damaging industries of the future.' Trump's massive spending bill was notably the trigger for Musk and the president's dramatic fall out just three weeks ago, with Musk taking issue with the bill's estimated $2.8 trillion spending increases. Musk - who celebrated his 54th birthday Saturday as he slammed Trump's bill - also criticized the impact the bill will have on the energy industry, with Musk recently pushing for a sharp increase in solar energy in the US. Responding to a post that noted the Senate vote 'could wipe out 500 (Giga Watts) of potential energy generation' by 2030, Musk wrote: 'This would be incredibly destructive to America!' 'At the same time, this bill raises the debt ceiling by $5 TRILLION, the biggest increase in history, putting America in the fast lane to debt slavery!' he added in another post. Earlier this month, Musk's opposition to the legislation saw his time in Trump's White House come to an acrimonious end as he tore into the president. Musk had spent the start of the year slashing the federal government's programs through his Department of Government Efficiency (DOGE), but saw the $150 billion he claimed to have saved wiped out by the spending increases in Trump's bill. In a shock X post that captured international headlines, Musk vented his fury by writing: '(Trump) is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!' Musk also claimed that Trump couldn't have won the 2024 presidential election without him, and said in a post that Trump's bill showed 'such ingratitude.' White House press secretary Karoline Leavitt told the Daily Mail at the time: 'This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted.' Trump's sweeping Big Beautiful Bill encapsulates much of his domestic agenda, covering everything from tax breaks and immigration to national defense and energy. Democrats are united against the bill, with Congressional Republicans - who hold majorities in both the House and Senate - set to decide whether President Trump's signature's domestic policy package will become law. Trump told Republicans to skip their holiday vacations and deliver the bill by the Fourth of July. Republicans say the bill is crucial because there would be a massive tax increase after December when tax breaks from Trump's first term expire. The legislation contains roughly $3.8 trillion in tax cuts. The existing tax rates and brackets would become permanent under the bill. It temporarily would add new tax breaks that Trump campaigned on: no taxes on tips, overtime pay or some automotive loans, along with a bigger $6,000 deduction in the Senate draft for older adults who earn no more than $75,000 a year. It would boost the $2,000 child tax credit to $2,200 under the Senate proposal. Families at lower income levels would not see the full amount. The bill would also fund the hiring of 10,000 new Immigration and Customs Enforcement officers, and would provide Homeland Security with a new $10 billion fund for grants for states that help with federal immigration enforcement and deportation actions. For the Pentagon, the bill would provide billions for ship building, munitions systems, and quality of life measures for servicemen and women, as well as $25 billion for the development of the Golden Dome missile defense system. The Defense Department would have $1 billion for border security. To help partly offset the lost tax revenue and new spending, Republicans aim to cut back some long-running government programs: Medicaid, food stamps, green energy incentives and others. It's essentially unraveling the accomplishments of the past two Democratic presidents, Biden and Barack Obama.
