Before Iran Deadline, Stocks Fall & Oil Rises – Europe Market Wrap
Stocks plummeted while oil rose ahead of Trump’s deadline of Tuesday evening for Iran to agree to a truce or face escalation. Contracts on the S&P 500 fell 0.4%, while Europe’s Stoxx 600 reversed its advance.
West Texas Intermediate crude increased 1.7% to $114.24 a barrel after Iran’s Mehr news reported blasts on Kharg Island, a key oil shipment point. The Dollar traded largely unchanged. Investors are looking for any signs of a breakthrough amid a rush of diplomatic activity before the 8 p.m. Eastern Time deadline.
The US president stresses that any agreement must assure continued transit through the Strait of Hormuz, a critical conduit for Middle Eastern oil supplies. He has threatened to demolish Iran’s bridges and power plants.
US Treasury 10-year yields increased 1 bps to 4.34%. Gold remained unchanged at $4,650 per ounce.
Trump’s ultimatum is the latest watershed point in the war, which has claimed thousands of lives and caused the largest-ever interruption to the global oil market. Iran fired seven ballistic missiles and numerous more drones at Saudi Arabia overnight into Tuesday, and the Israel Defence Forces recorded two missile volleys from Iran after midnight.
