US consumer sentiment improves in June
U.S. consumer sentiment improved for the first time in six months in June, but that could be temporary after Israel launched missile strikes against Iran, boosting
oil prices
.
The
University of Michigan Surveys of Consumers
on Friday said its Consumer Sentiment Index jumped to 60.5 this month from a final reading of 52.2 in May. Economists polled by Reuters had forecast the index rising to 53.5.
"Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed," said Surveys of Consumers Director Joanne Hsu. "However, consumers still perceive wide-ranging downside risks to the economy."
Consumers' 12-month
inflation expectations
fell to 5.1% from 6.6% in May. Long-run inflation expectations dipped to 4.1% from 4.2% last month.
Oil prices surged more than $5 per barrel on Friday to multi-year highs as the Israeli strikes on Iranian nuclear facilities stoked fears of retaliation and disruption of crude supplies from Middle East.
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Hindustan Times
19 minutes ago
- Hindustan Times
Oil soars as Trump's attack on Iran ramps up risks to supplies
Oil surged after the US struck Iran's three main nuclear sites and threatened further attacks, exacerbating a crisis in the Middle East and stoking concerns that energy supplies from the region could be disrupted. A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025.(Reuters) Global benchmark Brent rallied as much as 5.7% to $81.40 a barrel, extending three weeks of gains. Timespreads widened. In a weekend address, US President Donald Trump said air attacks had 'obliterated' the trio of targets, and threatened more military action if Iran didn't make peace. In its initial reply, Tehran warned the strikes would trigger 'everlasting consequences.' The US assault — which targeted sites at Fordow, Natanz, and Isfahan — dramatically raises the stakes in the confrontation and increases the premium that traders are pricing into the global energy market. Still, the extent of the gains will hinge on how Tehran opts to respond to the US moves. The global oil market has been gripped by the crisis since Israel attacked Iran more than a week ago, with futures pushing higher, options volumes spiking along with freight rates, and the futures curve shifting to reflect tensions about tighter near-term supplies. The Middle East accounts for about a third of global crude output, and higher, sustained prices would boost inflationary pressures worldwide. 'This could set us on a path toward $100 oil, if Iran responds as they have previously threatened to,' said Saul Kavonic, an energy analyst at MST Marquee. 'This US attack could see a conflagration of the conflict.' There are multiple, overlapping risks for physical crude flows. The biggest centers on the Strait of Hormuz, should Tehran seek to retaliate by attempting to close the chokepoint. About a fifth of the world's crude output passes through the narrow waterway at the entrance to the Persian Gulf. Iran's parliament has called for the closure of the strait, according to state-run TV. Such a move, however, could not proceed though without the explicit approval of Supreme Leader Ayatollah Ali Khamenei. Rival Suppliers In addition, Tehran could opt to target crude infrastructure in rival suppliers in the Middle East, such as fellow OPEC producers including Saudi Arabia, Iraq or the United Arab Emirates. After the US attack, both Riyadh and Baghdad expressed concern about the targeting of the nuclear facilities. Elsewhere, Tehran could orchestrate attacks on ships on the other side of the Arabian peninsula in the Red Sea, encouraging Yemen-based Houthi rebels to harass vessels. After the US attacks, the group threatened retaliation. If the hostilities escalate, Tehran's own oil-producing capabilities could be targeted, including the key export hub at Kharg Island. Such a move, however, could send crude prices soaring, an outcome that America might want to avoid. So far, Kharg Island has been spared, with satellite imagery pointing to a drive by Iran to expedite its exports of oil. The crisis will also throw a spotlight onto the Organization of Petroleum Exporting Countries, and its allies including Russia. In recent months, OPEC has been relaxing supply curbs at a rapid clip seeking to regain market share, and yet members still have substantial idled capacity that could be reactivated.
Mint
an hour ago
- Mint
Britain to cut companies energy bills in new industrial strategy
LONDON, June 22 (Reuters) - Britain will aim to cut the electricity bills of thousands of companies under a new industrial strategy to be published on Monday, heeding calls from business to lower high energy costs that they say have damaged competitiveness and hindered growth. Under an industrial strategy for the decade 2025-2035, the government plans to cut the bills of electricity-intensive manufacturers by up to 25% from 2027, a move it said could benefit more than 7,000 businesses. The government has made boosting Britain's anaemic growth a key priority. But lawmakers and business leaders had highlighted the sky-high energy costs many companies face as a hindrance to that aim, with industry body Make UK saying government should scrap climate levies imposed on firms. Britain has been under pressure to do more to support its key industries and bolster competitiveness as the United States and the European Union also seek to do likewise, in a trade landscape upended by U.S. President Donald Trump's tariffs. Alongside the strategy, five sectoral plans for areas such as advanced manufacturing, creative industries and clean energy are also set to be published. The Industrial Strategy focuses on eight previously identified sectors of strength for Britain, which also include defence and financial services. The government said it would exempt energy-intensive manufacturers from levies like the Renewables Obligation to boost their international competitiveness. "Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they have faced – this government has listened," Business Secretary Jonathan Reynolds said in a statement. The government said the energy measures would be funded through reforms to the energy system, without raising household bills or taxes. The scope and eligibility for the scheme will be finalised after a consultation. Make UK said the industrial strategy was a "giant and much needed step forward" that also tackled a skills shortage in Britain's workforce and access to capital. The Confederation of British Industry said it was an "unambiguous, positive signal" that would provide a "bedrock for growth" The industrial strategy, Britain's first in eight years, will expand the state-owned British Business Bank's capacity to channel investment into smaller companies, and provide an extra 1.2 billion pounds ($1.61 billion) a year on skills by 2028-29. The government added it would cut regulatory burdens on businesses, spend more on research and development and speed up planning processes. ($1 = 0.7435 pounds) (Reporting by Alistair Smout; editing by Clelia Oziel)
Time of India
2 hours ago
- Time of India
Israeli stocks hit record high
Israeli stocks hit record highs on Sunday as investors believe the US strikes would prevent Tehran from developing nuclear weapons anytime soon. The broader Tel Aviv 125 index closed 1.8% higher, while the blue-chip TA-35 gained 1.5%. reuters Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
