Latest news with #PriyankaSachdeva
BBC News
4 days ago
- Business
- BBC News
Oil prices fall afta Israel agree to Iran ceasefire
Oil prices fall by nearly 5% on Tuesday, 24 June afta Israel agree to di ceasefire wit Iran afta nearly two weeks of fight-fight. Brent crude, di international benchmark for oil prices, bin initially drop to $68 a barrel, den e recover some ground afta Iran and Israel accuse each oda of violating di ceasefire within hours. Prices bin go up recently, as concerns grow say Tehran fit disrupt global supplies by blocking di Strait of Hormuz, one key shipping route for oil and gas. Stock markets for di US, UK and Europe rise and hold steady afta US President Donald Trump tell Israel on social media say make dem no drop bombs afta dem accuse Iran of breaching di ceasefire. Oil prices bin go up to as high as $81 one barrel since di missile strikes start. Di conflict bin ginger fears say di cost of living fit increase as petrol, diesel and business expenses rise. Crude currently dey sell at $69.67, just below di level e dey wen Israel launch missiles against Iran nuclear sites on 13 June. "If dem follow di ceasefire as announced, investors fit expect di return to normalcy in oil," Priyanka Sachdeva, senior market analyst for Phillip Nova tok. But she add say "di extent to which Israel and Iran obey di recently announced ceasefire conditions go play a major role to determine oil prices". Di fall in prices narrow as Israel claim say Iran violate di ceasefire afta dem accuse Tehran of launching a missile strike. Stock markets for di US bin open higher. Di S&P 500 plus Dow Jones Industrial Average bin dey ahead by nearly 0.9% while di Nasdaq rise by more dan 1%. For Europe, UK FTSE 100 index for UK bin go up 0.4%, while Germany Dax increase by 1.7%. For Asia, Japan Nikkei share index close up 1.1%. Di Middle East conflict don push global energy prices higher, wey if dem sustain go get knock-on effect on energy bills and petrol prices. Wholesale UK gas prices drop by 12.5% on Tuesday, 24 June afta e spike higher. Qatar na major supplier of liquefied natural gas, ande dem dey transport am through di Strait of Hormuz. On Monday, Iran launch missiles at one US military base for Qatar in response to American strikes against Iran nuclear sites. Di recent rises in oil prices don lead to fears all ova di word say increased energy costs fit make everything - from petrol and food to holidays - more expensive around di world, including in the UK. Dis na wetin happun afta Russia invade Ukraine three years ago, wey affect pipo lives around di globe.
Yahoo
4 days ago
- Business
- Yahoo
Oil and gold slump halted as Israel accuses Iran of violating ceasefire
Oil prices (BZ=F, CL=F) have eased in early London trading hours after US president Donald Trump declared that Israel and Iran have negotiated a ceasefire. However, there has been a rise in the last few minutes, after Israel accused Iran of violating the ceasefire. Brent crude (BZ=F) lost 2.6% to $69.61 a barrel, while West Texas Intermediate dropped by the same margin to $65.92 in early trading. That's Brent's (BZ=F) lowest level since 11 June, just before Israel launched a series of airstrikes targeting Iran's nuclear and military sites. Over the past week, oil prices had spiked as concerns mounted that Iran might retaliate by blocking the Strait of Hormuz, a vital chokepoint for global oil and gas shipments. The price surge had sparked fears of rising living costs, with petrol, diesel and business expenses all likely to increase. Read more: Economics Nobel laureate calls for a 'working-class liberalism' "If the ceasefire is followed as announced, investors might expect the return to normalcy in oil," said Priyanka Sachdeva, senior market analyst at Phillip Nova. However, she added that "the extent to which Israel and Iran adhere to the recently announced ceasefire conditions will play a significant role in determining oil prices". Tensions spiked again as Israel this Tuesday morning accused Iran of violating the ceasefire. Israeli defence minister Israel Katz issued a statement, saying he has ordered the Israel Defense Forces to "respond forcefully to Iran's violation of the ceasefire with intense strikes against regime targets in the heart of Tehran". Gold prices (GC=F) fell to their lowest level in nearly two weeks on Tuesday morning, as news of a ceasefire between Iran and Israel prompted investors to retreat from safe-haven assets and embrace riskier trades. However, picked up slightly amid reports of the ceasefire violation. In early European trading, gold futures dropped 1.7% to $3,336.00 an ounce, while spot gold edged 0.1% lower to $3,329.41 per ounce. "It seems like there's a good bit of geopolitical risk that's exiting the market here near term after, of course, we have signs of de-escalation between the US and Iran," said Ilya Spivak, head of global macro at Tastylive. The truce, which ends a 12-day conflict between Israel and Iran, has sharply reduced near-term geopolitical tensions that had driven strong demand for gold in recent weeks. 'The market is pricing out the premium that was built in over potential supply disruptions and broader regional escalation,' said Alex Hines, commodities strategist at HBC Futures. Read more: Key questions to ask yourself to plan for a comfortable retirement With the Middle East tensions receding, investor focus has shifted toward US monetary policy. US Federal Reserve officials have signalled the possibility of a rate cut as soon as July, contingent on continued progress in taming inflation. On Monday, Fed vice chair for supervision Michelle Bowman said she was open to easing policy if inflationary pressures continue to abate. Gold (GC=F), which tends to perform well in a low-interest-rate environment, could still benefit if the Fed does opt to cut. But markets remain cautious. "The bias for gold prices is higher, but we might see a correction in the near term and an uptick in the dollar if Powell convinces markets that they're not going to cut more than twice this year," Spivak said. The pound has surged against the dollar (GBPUSD=X), up by 0.4% to $1.3577 at the time of writing, as the ceasefire between Israel and Iran reduced safe-haven demand for now. The US dollar index ( which tracks the greenback against a basket of six currencies, lost 0.3% to 98.12, from a fresh two-week high of around 99.40 posted the previous day. "Iran had previously threatened to block the Strait of Hormuz, which is one of the world's most important transport routes for oil and natural gas, and the fact that Iran did not attack energy-related targets caused oil prices to fall and stock markets to rise," said Elisabet Kopelman, US economist at SEB Macro & FICC research. "So far, a ceasefire – or at least the averted risk of extended conflict – seems to be the main assumption in the markets," she added. Stocks: Create your watchlist and portfolio A de-escalation in the conflict should enable the pound and the euro to extend a recovery; however, upside will likely be limited owing to the UK's slowing economy and the heightened odds that the Bank of England will accelerate the interest rate cutting cycle. In other currency moves, the pound was higher against the euro (GBPEUR=X), up 0.3% to €1.1707 at the time of writing. In equities, the UK's FTSE 100 (^FTSE) climbed 0.5% to 8,797.46 points at the time of writing. For more details, follow our live blog coverage here.
Yahoo
4 days ago
- Business
- Yahoo
Oil and gold slump halted as Israel accuses Iran of violating ceasefire
Oil prices (BZ=F, CL=F) have eased in early London trading hours after US president Donald Trump declared that Israel and Iran have negotiated a ceasefire. However, there has been a rise in the last few minutes, after Israel accused Iran of violating the ceasefire. Brent crude (BZ=F) lost 2.6% to $69.61 a barrel, while West Texas Intermediate dropped by the same margin to $65.92 in early trading. That's Brent's (BZ=F) lowest level since 11 June, just before Israel launched a series of airstrikes targeting Iran's nuclear and military sites. Over the past week, oil prices had spiked as concerns mounted that Iran might retaliate by blocking the Strait of Hormuz, a vital chokepoint for global oil and gas shipments. The price surge had sparked fears of rising living costs, with petrol, diesel and business expenses all likely to increase. Read more: Economics Nobel laureate calls for a 'working-class liberalism' "If the ceasefire is followed as announced, investors might expect the return to normalcy in oil," said Priyanka Sachdeva, senior market analyst at Phillip Nova. However, she added that "the extent to which Israel and Iran adhere to the recently announced ceasefire conditions will play a significant role in determining oil prices". Tensions spiked again as Israel this Tuesday morning accused Iran of violating the ceasefire. Israeli defence minister Israel Katz issued a statement, saying he has ordered the Israel Defense Forces to "respond forcefully to Iran's violation of the ceasefire with intense strikes against regime targets in the heart of Tehran". Gold prices (GC=F) fell to their lowest level in nearly two weeks on Tuesday morning, as news of a ceasefire between Iran and Israel prompted investors to retreat from safe-haven assets and embrace riskier trades. However, picked up slightly amid reports of the ceasefire violation. In early European trading, gold futures dropped 1.7% to $3,336.00 an ounce, while spot gold edged 0.1% lower to $3,329.41 per ounce. "It seems like there's a good bit of geopolitical risk that's exiting the market here near term after, of course, we have signs of de-escalation between the US and Iran," said Ilya Spivak, head of global macro at Tastylive. The truce, which ends a 12-day conflict between Israel and Iran, has sharply reduced near-term geopolitical tensions that had driven strong demand for gold in recent weeks. 'The market is pricing out the premium that was built in over potential supply disruptions and broader regional escalation,' said Alex Hines, commodities strategist at HBC Futures. Read more: Key questions to ask yourself to plan for a comfortable retirement With the Middle East tensions receding, investor focus has shifted toward US monetary policy. US Federal Reserve officials have signalled the possibility of a rate cut as soon as July, contingent on continued progress in taming inflation. On Monday, Fed vice chair for supervision Michelle Bowman said she was open to easing policy if inflationary pressures continue to abate. Gold (GC=F), which tends to perform well in a low-interest-rate environment, could still benefit if the Fed does opt to cut. But markets remain cautious. "The bias for gold prices is higher, but we might see a correction in the near term and an uptick in the dollar if Powell convinces markets that they're not going to cut more than twice this year," Spivak said. The pound has surged against the dollar (GBPUSD=X), up by 0.4% to $1.3577 at the time of writing, as the ceasefire between Israel and Iran reduced safe-haven demand for now. The US dollar index ( which tracks the greenback against a basket of six currencies, lost 0.3% to 98.12, from a fresh two-week high of around 99.40 posted the previous day. "Iran had previously threatened to block the Strait of Hormuz, which is one of the world's most important transport routes for oil and natural gas, and the fact that Iran did not attack energy-related targets caused oil prices to fall and stock markets to rise," said Elisabet Kopelman, US economist at SEB Macro & FICC research. "So far, a ceasefire – or at least the averted risk of extended conflict – seems to be the main assumption in the markets," she added. Stocks: Create your watchlist and portfolio A de-escalation in the conflict should enable the pound and the euro to extend a recovery; however, upside will likely be limited owing to the UK's slowing economy and the heightened odds that the Bank of England will accelerate the interest rate cutting cycle. In other currency moves, the pound was higher against the euro (GBPEUR=X), up 0.3% to €1.1707 at the time of writing. In equities, the UK's FTSE 100 (^FTSE) climbed 0.5% to 8,797.46 points at the time of writing. For more details, follow our live blog coverage in to access your portfolio
Business Insider
4 days ago
- Business
- Business Insider
A Strait of Hormuz crisis could hit global oil, but China may be less vulnerable than it looks
Rising tensions in the Middle East have reignited fears that Iran could blockade the Strait of Hormuz, a critical oil shipping route. A closure could send shockwaves through global energy markets, including to China, the world's largest oil importer. Much of China's oil has historically come from the Middle East, but analysts say changes in recent years may offer some buffer from any Hormuz-induced issues. "China has been actively diversifying its energy sources and bolstering domestic reserves, which could buffer immediate shocks," Priyanka Sachdeva, a senior analyst at brokerage Phillip Nova, told Business Insider. In the first quarter of 2023, Iran was China's third-largest crude oil supplier, according to Dilin Wu, a research strategist at Pepperstone. Since 2024, China has increasingly leaned on Russia, Saudi Arabia, and Russia for crude. The three countries accounted for 20%, 14%, and 13% of Chinese imports, respectively. Countries are diversifying energy sources Beyond geopolitical risks, Iran's exports to China were troubled before the ongoing conflict in the Middle East. Issues included contract breaches and sanctioned oil stuck at Chinese ports for years. "Chinese firms increasingly view Iran as a 'price-competitive yet high-risk' supplier, prompting a strategic shift toward more stable alternatives like Russia," wrote Wu. Meanwhile, China's broader oil demand is softening due to its slowing economy and a shift toward renewable energy. That dampens the urgency of any short-term supply disruption. In 2023, coal — mostly domestic supplies — accounted for 61% of China's energy mix, according to the International Energy Agency. Meanwhile, oil and natural gas made up 18% and 8% of the country's energy sources. Should the Hormuz experience an extended blockage that strains China's import flows, the East Asian nation could shift to buying more Russian, African, or US oil, said Sachdeva. Other top global economies have also been adjusting their energy strategies to account for uncertainties in geopolitics, wrote Kaho Yu, the head of natural resources at risk intelligence company Verisk Maplecroft. The European Union is phasing out Russian energy despite higher costs and tighter markets. Japan and South Korea are seeking to lock in long-term Qatari liquified natural gas deals for supply stability, even though prices are higher than on the spot market. "The latest Middle East escalation reinforces this shift: energy policy is now shaped as much by geopolitical risk as by price," Ho wrote. Most analysts say they do not think Iran would blockade the Hormuz because it doesn't serve Tehran's interest. "Tehran knows such a move would devastate its own economy, alienate China, its largest crude customer, and risk triggering massive military retaliation," wrote Claudio Galimberti, the chief economist at Rystad Energy.
BBC News
4 days ago
- Business
- BBC News
Oil prices drop as Israel agrees to ceasefire with Iran
Oil prices tumbled by nearly 5% on Tuesday after Israel agreed to a ceasefire with Iran after nearly two weeks of crude, the international benchmark for oil prices, fell to $68 a barrel, which is below the level it was at when Israel launched missiles against Iran's nuclear sites on 13 had spiked in recent days as concerns grew that Iran could disrupt global supplies by blockading the Strait of Hormuz, a key shipping route for oil and gas. Stock markets in Asia rose as US President Donald Trump declared the ceasefire "is now in effect", after which Israel confirmed that it had agreed to the move. Oil prices have soared to as much as $81 a barrel since the missile strikes began, stoking fears that the cost of living could increase as petrol, diesel and business expenses grew. "If the ceasefire is followed as announced, investors might expect the return to normalcy in oil," said Priyanka Sachdeva, senior market analyst at Phillip he added that "the extent to which Israel and Iran adhere to the recently announced ceasefire conditions will play a significant role in determining oil prices". Japan's Nikkei share index rose by 1.1% while Hong Kong's Hang Seng increased by 2.1%.
