Markets are relatively quiet at this stage: TotalEnergies CEO
TotalEnergies CEO Patrick Pouyanné joins CNBC's JP Ong at the Energy Asia conference to discuss the oil market impact of the conflict between Israel and Iran.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
7 hours ago
- CNBC
Gulf markets end higher, shielded from major turmoil after the U.S. strike on Iran
Markets across the Middle East ended mostly higher on Sunday after the United States entered the war between Israel and Iran and struck three key Iranian nuclear sites, Fordo, Natanz and Isfahan. Stocks in Tel Aviv reached an all-time high on Sunday on bets that Washington's entrance into the conflict with Tehran would help it to come to an end, despite the Iranian Foreign Minister's insistence that the country could not return to diplomacy "while under attack." The broader TA-125 index was trading 1.77% higher on Sunday, while the TA-35, Tel Aviv's blue-chip index, was up 1.5%. Equities climbed in Israel last week after the country hit targets in Iran. In the Gulf, Saudi Arabia's Tadawul opened Sunday trading nearly half a percent higher before erasing earlier gains and closing down 0.3%. Qatar gained 0.2% and Bahrain's index added 0.3%. Bahrain, home to the U.S. Central Command, issued a "work from home mandate" on Sunday, urging citizens to "only use main roads when necessary to maintain public safety." Egypt's benchmark EGX30 was the major gainer in the region, closing 2.7% higher on Sunday. "The Gulf has distanced itself and has been calling for appeasement, supporting a peaceful resolution, and has gone as far as condemning Israeli aggression," Fadi Arbid, founding partner and CIO of Amwal Capital Partners, told CNBC. He explained that such rhetoric "has helped the Gulf isolate itself from conflict" and any significant short-term market impact, adding that the net mid-term is positive. "The market might be priced in on removing a big overhang, which is the Iranian threat," Arbid said, which "at least the international investor would look at positively" once the issue of Iran is removed. Saudi Arabia, the UAE and Qatar have all released statements in the last 24 hours, the UAE urged an immediate halt to escalation to "avoid serious repercussions" in the region, while Saudi Arabia expressed concern and Qatar said it "deplored deterioration" in the conflict between Israel and Iran. Investors will be watching for swings in the oil market when it opens later this evening, and whether Iran intends to block the Strait of Hormuz, a crucial waterway through which a quarter of the world's oil supply passes. Tanker Trackers, a website that tracks global oil shipments, said that as of 3:40 p.m. UAE time on Sunday, "tanker traffic is still moving in both directions within the Strait of Hormuz," citing AIS data. "Oil prices are likely to open higher, further increasing the geopolitical risk premium," Giovanni Staunovo, a commodity analyst at UBS told CNBC on Sunday, adding that oil will maintain a "risk premium for now," and prices will remain volatile in the near term as it is "unclear how the conflict might evolve." Prices fell 2% on Friday, before U.S. President Donald Trump moved to enter the war between Israel and Iran. Brent futures have jumped 11% since Israel's attack on Iran less than two weeks ago, and both Brent and U.S. crude oil have remained volatile since. Prices are expected to rise on Monday following Washington's strike on Iran's nuclear facilities. "Oil markets are likely to take the U.S. attacks as a substantial escalation of the war and price in elevated security of supply risks." Edward Bell, acting chief economist at Emirates NDB, told CNBC. He added that markets remain bound by headlines, not fundamentals and said to expect "big swings" in the coming days. "While there remains no interruption to flows of oil coming out of the Gulf and oil infrastructure has not come under direct attack, markets will still likely price in an elevated geopolitical premium," Bell said.
Yahoo
10 hours ago
- Yahoo
'The Big Short' Investor Steve Eisman Says Iran Crisis Could Be 'Extremely Positive' For Markets, Calls Regime A 'Death Cult' Close To Nuclear Weapons
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Investor Steve Eisman has a surprising take on the escalating tensions in the Middle East, one that cuts from conventional wisdom during periods of geopolitical conflicts. What Happened: On Wednesday, Eisman said the crisis in Iran may actually turn out to be 'extremely positive' for global markets and geopolitical stability during his appearance on CNBC's 'Squawk Box.' The investor, best known for shorting collateralized debt obligations in the lead up to the 2008 financial crisis, which inspired the character played by Steve Carell in the 2015 movie 'The Big Short,' describes Iran as a 'death cult,' which is now 'very close to getting a nuclear weapon.' Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Eisman argues that if Iran succeeds in its nuclear quest, it will trigger a regional arms race, with neighbors like Turkey and Saudi Arabia seeking their own deterrents. 'That would have been a disaster,' he says, adding that getting rid of such a death cult anywhere in the world, 'is a very positive thing.' He also states that the markets hadn't priced in this risk, but he believes the situation now offers potential upside, referring to the removal of a long-term geopolitical destabilizer that could benefit both the markets and global security. Why It Matters: Stocks have been relatively unfazed since the beginning of this conflict, with limited impact on the benchmarks thus far. Economists, too, have recently stated that the impact on the U.S. economy from this conflict is fairly limited. David Seif, Chief Economist for developed markets at Nomura, said, 'recession risks are higher, but only by a tiny bit.' The Chief Economist at Santander U.S. Capital Markets, Stephen Stanley, shared similar sentiments, that 'the fallout to the U.S. is pretty limited.' There are, however, several beneficiaries of this conflict, which primarily include defense companies that have been rallying over the past Month-To-Date (%) Year-To-Date (%) Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) 20.01 59.82 Optex Systems Holdings Inc. (NASDAQ:OPXS) 21.37 50.87 BWX Technologies Inc. (NYSE:BWXT) 27.77 26.06 RTX Corp. (NYSE:RTX) 6.32 25.74 Defense stocks have been rallying over the past month, amid intensifying tensions in the Middle East, and growing speculations regarding American involvement. Higher energy prices, however, can weigh on the economy, with Warren Patterson, head of commodity strategy at ING, saying that 'Iran is a meaningful oil producer, pumping 3.3 million barrels per day and exporting around 1.7 million,' and any disruption in this, he says, can push prices to $120 per Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Image Via Shutterstock This article 'The Big Short' Investor Steve Eisman Says Iran Crisis Could Be 'Extremely Positive' For Markets, Calls Regime A 'Death Cult' Close To Nuclear Weapons originally appeared on
Yahoo
14 hours ago
- Yahoo
Israel-Iran conflict fuels best month for energy stocks since 2022
The European energy sector is staging its strongest rally in years as escalating hostilities between Israel and Iran stoke fears of supply disruptions. The conflict is sending oil prices and energy shares sharply higher across the continent. The Euro STOXX 600 Energy index, which tracks major European oil and gas firms including BP, TotalEnergies, Eni and Repsol, has surged nearly 8% month-to-date, on track for its strongest monthly gain since October 2022. The rally stands in stark contrast to the broader Euro STOXX 600 index, which has declined by 1% over the same period. This 9 percentage point gap marks the sector's widest monthly outperformance since May 2022, underscoring the market's sharp pivot towards energy names as investors brace for prolonged geopolitical tensions in the Middle East. BP shares have climbed 9% so far in June, on course for their best month since September 2023. Italy's Eni has gained 9.1%, its strongest monthly showing since October 2022, while France's TotalEnergies is up 7%, a level last seen in April 2024. Portuguese energy company Galp Energia has led the sectoral gains with a 12% jump. The surge in energy equities mirrors a significant rally in oil prices. Brent crude has spiked to $75 a barrel, up 20% this month. That marks the largest monthly increase since November 2020, when news of successful COVID-19 vaccine trials first lifted global markets. Related Trump demands Iran's 'unconditional surrender' again as conflict with Israel continues Israel starts flying home citizens stranded abroad during conflict with Iran Iran asks its citizens to delete WhatsApp from their devices Tehran residents flee as Israel-Iran conflict continues for fifth day Oil prices may stay higher for longer, with analysts warning that the geopolitical risk premium now embedded in crude markets could persist. Following Israeli airstrikes on Iranian nuclear and military targets, Tehran has raised the spectre of a potential closure of the Strait — a move that would choke off nearly 20 million barrels per day of crude and refined products, according to the International Energy Agency (IEA). While a complete shutdown remains unlikely, even limited disruptions could unsettle markets. 'There's the potential for disruptions to shipping through the Strait of Hormuz,' said Warren Patterson, head of commodities strategy at ING. According to the expert, almost a third of global seaborne oil passes through this checkpoint and any material threat to that route sends an immediate signal to energy markets. Patterson indicated that in the event of a significant disruption to flows through the Strait of Hormuz, oil prices could surge to $120 per barrel. On Tuesday, President Donald Trump convened a high-stakes meeting with his national security team inside the White House Situation Room to discuss the possibility of US military involvement alongside Israel in its war against Iran. Earlier that day, Trump had abruptly departed the G7 summit in Canada, fuelling speculation that a major foreign policy shift was imminent. Although no official decision has yet been announced, Iran issued a clear warning that it would target US military bases across the Middle East if Washington entered the conflict.
