Oil prices drop sharply after Trump moves to reassure markets over Iran war
Oil prices have tumbled from four-year highs, capping an extraordinary 24 hours in global markets after Donald Trump suggested the US-Israel war on Iran could end “very soon”.Brent crude, the international benchmark, surged as high as $119.50 per barrel on Monday as the Middle East conflict intensified fears of a deepening energy supply crisis.Trump sought to play down this remarkable increase, claiming that oil prices had risen “probably less than I thought they’d go up”, while moving swiftly to reassure investors.Brent fell to $91.
58 per barrel in the hours after the US president described the war on Iran as “very complete, pretty much” in an interview with CBS News.Once markets had closed, however, Trump made a series of conflicting remarks which suggested the conflict would continue.“We have won in many ways,” he said.“But not enough.”He wrote on social media: “If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far.
”About a fifth of global oil and seaborne gas tankers typically pass through the strait, which has already in effect been closed for a week, heightening concerns over energy supplies which have propelled prices higher.Tehran declared that it would not allow “one litre of oil” to be exported from the region if US and Israeli attacks continue, Iranian state media reported on Tuesday, citing a spokesperson for the regime’s Revolutionary Guards (IRGC).The French president, Emmanuel Macron, indicated on Monday that a string of countries could deploy ships to “escort” container ships and tankers in a bid to shore up the vital trade route once “the most intense phase of the conflict” was over.Trump’s rhetoric appeared to reassure investors.Oil prices fell sharply, after one of the most volatile days in energy markets since the height of the Covid crisis and the aftermath of Russia’s invasion of Ukraine.
The US president said Washington would waive some oil-related sanctions in a bid to ease shortages,While he did not mention Russia by name, the disclosure was made shortly after Trump spoke with Vladimir Putin, the country’s president,Such a move would risk complicating US efforts to punish Moscow for its war on Ukraine,“We have sanctions on some countries,” Trump told reporters,“We’re going to take those sanctions off until the strait is up.
”The Trump administration last week permitted Indian refiners to temporarily buy Russian oil for 30 days – just a month after Trump claimed India had agreed to stop purchasing it, in a shift that he said would “help END THE WAR in Ukraine” by cutting off a key source of funds for Russia.While global oil prices have dropped from Monday’s peaks, they continue to trade at significantly higher levels than just a few weeks ago.Apprehension over elevated fuel costs, and uncertainty over supplies, prompted governments across Europe and Asia to take action.Croatia, Hungary, South Korea and Thailand have imposed price caps on fuel in recent days to mitigate the threat of shortages.The Philippines ordered public officials to cut back on air conditioning usage and reduce travel last week.
Bangladesh also moved to close all universities, bringing forward the Eid al-Fitr holidays as part of emergency measures to conserve electricity and fuel.
Golf club firm owned by Trump’s sons merges with drone manufacturer
A golf club company backed by the sons of Donald Trump is merging with drone manufacturer Powerus in a deal designed to take the drone technology company public.The merger with Aureus Greenway Holdings is the latest in Eric and Donald Trump Jr’s growing investments in the drone sector, following last month’s $1.5bn tie-up between Israeli drone maker XTEND and Florida-based JFB Construction Holdings. Drones have become a major procurement priority for the Pentagon and are widely used in Ukraine, where dense air defense systems near the frontlines limit the deployment of conventional aircraft.This growing reliance has also drawn significant Silicon Valley funding into drone and military artificial intelligence startups, boosting valuations of US companies such as Anduril Industries and Shield AI
How high could oil prices go – and what might the global economic fallout be?
Fears over the global economy have been stoked by the oil price soaring past $100 a barrel as a result of the US-Israel war with Iran.Economists say the increasing likelihood of a prolonged conflict in the vital energy exporting region could have serious consequences for living standards around the world amid the threat of a renewed inflation shock.Against a highly uncertain backdrop, financial markets are under heavy selling pressure, consumers are facing rising prices, central banks could be forced to increase borrowing costs and governments will come under pressure to support households and businesses.Oil prices passed $119 a barrel on Monday, the highest level since Russia’s full-scale invasion of Ukraine in February 2022. Analysts say the continued closure of the strait of Hormuz could drive the price close to $150 a barrel, above the record high of $145
Rachel Reeves warns fuel retailers not to make ‘excess profits’ from oil crisis; G7 ‘stands ready’ to release crude reserves – as it happens
Time for a recap, after a dramatic day in the financial markets.UK chancellor Rachel Reeves has warned petrol, diesel and heating oil retailers not to take advantage of the surge in oil prices.Updating MPs about the situation, after an alarming surge in oil prices last night, Reeves said she would “continue to monitor prices” at the pumps as the situation develops.She told the House of Commons:double quotation markI have also asked the Competition and Markets Authority to be vigilant across prices, including essentials like road fuel and heating oil.Let me be absolutely clear
How will war in the Middle East affect your finances?
The war in the Middle East is continuing to tighten the screw on the finances of people around the world. Stock markets have fallen and the oil price has surged over $100 a barrel for the first time in four years – fuelling fears of a new cost of living crisis.Here is how it could affect your bills, spending and investments if you live in the UK.“Average petrol and diesel prices have rocketed in the last week and are unfortunately likely to keep on rising, so the situation for UK drivers is looking increasingly bleak,” said Simon Williams, the head of policy at the RAC.Speaking on Monday morning, he said petrol had risen by 5p to 137
Live Nation reaches surprise settlement with justice department in antitrust case
Live Nation, which owns Ticketmaster, has reached a surprise settlement with the Department of Justice in its antitrust case just one week after the trial began.Under the agreement, Live Nation will create a $280m settlement fund for states that participated in the lawsuit and Ticketmaster will be required to open parts of its platform to rival ticketing companies, Live Nation announced Monday.The agreement also will require Ticketmaster to divest from exclusive booking agreements it has with 13 amphitheaters in the US and cap service fees at 15% of the ticket price. The agreement also limits long-term exclusivity contracts utilized by Ticketmaster when partnering with venues.An attorney for New York State told jurors last week that Ticketmaster keeps an average of $7
Yorkshire Water receives fresh funding despite sewage fines and pay row
A leading European investor will pump fresh funding into Yorkshire Water including helping to cover a £600m loan, despite recent heavy sewage fines and a scandal over executive pay at the utility company.EQT, a Swedish private equity group, said on Monday it would take a 42% stake in Kelda Holdings, the Jersey-registered parent company of Yorkshire Water, which has 5.7 million customers across Yorkshire and parts of the East Midlands and Lincolnshire.The move will effectively make it Yorkshire Water’s joint owner, bringing the stake of an existing shareholder, GIC, an investment firm, to 42%, and TCorp, the investment vehicle of Australia’s New South Wales public sector, to 16%.EQT said part of the deal would involve contributing to a £600m “inter-company loan repayment” that is due before March 2027, while it was “fully supportive” of spending plans to clean up Yorkshire’s record on sewage spills
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