Oil prices slipped and global stock markets rallied Wednesday as reports emerged of a US plan to end the war with Iran, only for Tehran to reject the overture, according to state media. Investors initially cheered signs that hostilities could ease, with the safe-haven dollar losing ground. However, the arrival of additional US troops in the Middle East and renewed missile exchanges between Iran and Israel highlighted ongoing risks, reports AFP.
US President Donald Trump warned he would "unleash hell" if Iran failed to reach a deal, while Iranian Foreign Minister Abbas Araghchi said Tehran had no intention to negotiate. An unnamed Iranian military official also warned that shipping in the Red Sea could be targeted if the US launched a ground invasion.
Brent crude fell 2.2 percent to $102.22 a barrel, while West Texas Intermediate dropped 2.2 percent to $90.32 a barrel, after earlier plunging more than six percent. Analysts said the stock rally reflected investors seizing on any potentially positive developments, particularly the easing of oil prices. Wall Street closed higher, with the Dow rising 0.7 percent to 46,429.49, the S&P 500 up 0.5 percent to 6,591.90, and the Nasdaq gaining 0.8 percent to 21,929.83. European markets also rose, with London, Frankfurt, and Paris up nearly 1.5 percent, while Asian markets saw strong gains, led by Tokyo’s 2.9 percent surge.
The International Chamber of Commerce warned that the conflict could trigger the "worst industrial crisis" in decades. Meanwhile, the International Energy Agency said it was ready to release additional oil reserves if necessary. Tehran announced that vessels from “non-hostile” nations would be allowed through the Strait of Hormuz, providing some relief to global markets.
European Central Bank chief Christine Lagarde emphasized that policymakers were ready to act amid the energy shock, though last week the ECB kept rates on hold, warning of inflationary pressures and slower growth in the eurozone. Analysts expect potential rate hikes in the coming month to counter surging consumer prices.
At around 2015 GMT, Brent North Sea Crude was down 2.2 percent at $102.22 a barrel and West Texas Intermediate fell 2.2 percent to $90.32 a barrel. The Dow rose 0.7 percent to 46,429.49, the S&P 500 climbed 0.5 percent to 6,591.90, and the Nasdaq gained 0.8 percent to 21,929.83. In Europe, the FTSE 100 advanced 1.4 percent to 10,106.84, the CAC 40 rose 1.3 percent to 7,846.55, and the DAX increased 1.4 percent to 22,957.09. In Asia, the Nikkei 225 gained 2.9 percent to 53,749.62, the Hang Seng Index rose 1.1 percent to 25,335.95, and the Shanghai Composite added 1.3 percent to 3,931.84. Currency markets saw the euro fall to $1.1565 against the dollar, the pound down to $1.3365, the dollar rise to 159.47 yen, and the euro decline to 86.52 pence against the pound.
Bd-pratidin English/ Jisan
