Oil and stock markets plunge after Trump's tariffs rattle investors
Oil and global stocks dropped on Thursday, as markets were rattled by US President Donald Trump's sweeping tariffs announced on Wednesday, expected to upend global trade. Brent, the benchmark for two thirds of the world's oil, was down 2.24 per cent at $73.27 a barrel at 7.15am UAE time on Thursday. West Texas Intermediate, the gauge that tracks US crude, was 2.43 per cent lower at $69.97 a barrel. Asian stocks also fell sharply on Monday, with Japan's Nikkei 225 index plunging by about 4.6 per cent in early trading to hit its lowest in about eight months, before recovering slightly later in the day. Mr Trump announced a higher-than-anticipated 24 per cent tariff on Japanese goods. Meanwhile, South Korea's benchmark Kospi index was also down about 1.08 per cent, Hong Kong's Hang Seng index was 1.64 per cent lower, the Shanghai Composite index was 0.36 per cent lower at 7.25am UAE time. US stock futures were also down on Thursday, with the S&P 500 and the Nasdaq futures down 2.77 per cent and 3.3 per cent, respectively. 'Companies that make up the S&P 500 generate about 40 per cent of their revenue outside of the United States. This leaves Wall Street exposed to potential trade wars that hamper the free flow of goods and services,' said Zain Vawda, market analyst at Oanda. 'S&P 500 technology companies such as Apple, Microsoft and Nvidia rely on non-US markets for over half their sales. Given the poor performance by some of them so far in 2025, caution appears to be the only game in town.' Mr Trump announced sweeping tariffs on US trading partners on Wednesday, as world leaders prepared to impose retaliatory actions, setting the stage for possible trade wars that could affect global economic growth. The minimum 10 per cent tariffs on all imports were established through an executive order with Mr Trump saying the action will be imposed on 'friend and foe alike' because, 'in many cases, the friend is worse than the foe in terms of trade'. China and Vietnam were the targets of some of the harshest tariffs, at 34 per cent and 46 per cent. India will be hit with a 26 per cent tariff while the EU will receive a 20 per cent levy. Pakistan (29 per cent), Israel (17 per cent) and the UK (10 per cent) were also on a list of more than a dozen countries hit by the tariffs. Mr Trump also announced a minimum baseline tariff of 10 per cent for remaining countries, with rates going even higher for countries deemed the 'worst offenders'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
UAE Moments
4 hours ago
- UAE Moments
US President Trump Extends TikTok Sale Deadline by 90 Days
In a significant move, U.S. President Donald Trump has extended the deadline for ByteDance, TikTok's parent company, to sell the popular video-sharing app's U.S. operations by 90 days. The US President posted on Social Truth, "I've just signed the Executive Order extending the Deadline for the TikTok closing for 90 days (September 17, 2025)." The TikTok ban took effect on January 19, one day before President Trump's inauguration. Upon taking office, President Trump gave TikTok 75 days to divest its U.S. business, but a second extension pushed the deadline to Thursday, June 19, but now the deadline is September 17. "We are grateful for President Trump's leadership and support in ensuring that TikTok continues to be available for more than 170 million American users," TikTok said in a statement. This article was previously published on saudimoments. To see the original article, click here
The National
10 hours ago
- The National
Has Europe given Iran an impossible nuclear ultimatum?
European negotiators have insisted Iran must accept that it cannot enrich uranium as part of its nuclear programme, so that peace can return to the Middle East, experts told The National. It is understood that Iran has been agreeable to limiting enrichment to 3.67 per cent, which is the standard level required for civilian nuclear reactors and was part of the previous nuclear agreement. But even this amount is unacceptable to the three European countries, Britain, France and Germany, currently holding talks with Iran in Geneva. 'The Europeans have now started insisting on zero as well, which the Iranians have said is going to be a non-starter,' said Darya Dolzikova, an expert on nuclear proliferation at the Rusi think tank. Iran has engaged in years of brinkmanship by defying international inspectors to enrich uranium to near weapons-grade level. Until the Israeli attacks of the last week, the threat of an assault on its installations seemed to have 'lacked some credibility for the Iranians'. In recent days the regime has appeared to accept the 3.67 per cent figure as a negotiating position, the same amount agreed under the 2015 JCPOA nuclear agreement. For any deal to last it will have to be signed off by US President Donald Trump who has also insisted on zero enrichment, said Richard Pater, director of Bicom, the Anglo-Israeli think tank. 'It all depends on whether 3.67 is acceptable to Trump or whether he's insisting on no enrichment whatsoever,' he said. 'But it's also this question of whether Trump will accept that [3.67 per cent] to get the big peace deal that he wants. Israel will then have no choice but to acquiesce to the American position.' Ms Dolzikova also argued that the Iranians would not agree to a deal that 'doesn't involve the United States as they are the critical players'. But Israel itself has insisted that it will not back down until Iran completely ends its nuclear programme and has made clear that any uranium enrichment on Iranian soil is something that it will not accept. Hasan Al Hasan, a nuclear expert at the International Institute for Strategic Studies, suggested that the 3.67 per cent figure was now redundant as 'there is no indication that Israel is in a mood to negotiate'. Having achieved near total freedom of action in the skies, Israel was likely to 'press ahead with its maximalist war objectives of eliminating Iran's nuclear and missile programmes and perhaps even regime change'. He added that Mr Trump's announcement that he would make no decision on joining the attacks - that would benefit from America's massive bunker-busting bombs - for the next two weeks was a signal for Israel to 'get the job done' in that period. But there is also a question whether within that fortnight window Israel, without US bombs, has the capability to destroy Iran's nuclear facilities. 'Israel is obviously probably more bullish right now and looking for the removal of the whole nuclear project in its entirety, but it remains to be seen whether that's in their gift,' said Ms Dolzikova. There is also a fear that if 3.67 per cent is agreed by Iran then it might in secret enrich uranium, and conduct a nuclear weaponisation programme viewing it as the only effective deterrent. 'If the regime survives this, then 3.67 per cent gives them another basis with which to start again,' said Mr Pater. 'Israel is under no illusion the Iranians given the chance, will do it all over again.'
Khaleej Times
11 hours ago
- Khaleej Times
How Bitcoin is changing from a volatile gamble to foundation for wealth-building
The crypto markets have been a bit shaky lately, thanks to even more geopolitical uncertainty. But what I haven't seen before — and what's been filling me with a new sense of pride and wonder — is Bitcoin holding steady. Really steady. In my short time exploring this space, that kind of stability is unheard of. Of course, it could crash by the time this is published, which got me thinking about one of the most common fears people who don't understand Bitcoin still cling to: 'What if it goes to zero?' However, it's a fear I no longer have. Let's rewind. I like to look up older prices of Bitcoin in times of uncertainty. But the prices can't be too old, or I start feeling sorry for myself that it took me so long to start investing. (Imagine buying Bitcoin on February 21, 2014, when it bottomed at $111.60 after the Mt Gox crypto exchange went bankrupt.) Eighteen months ago, Bitcoin was around $42,000 — up dramatically from $25,000 in September 2023. All it takes is a quick glance at the charts to see how dramatically Bitcoin has outperformed other, more traditional investing avenues like the S&P or gold, since its inception in 2009. And lately, it's starting to feel — dare I say — much less volatile, too. For those of us paying attention, that's a big deal. Because what happens when the asset once criticised for its volatility is no longer volatile — just as everyone from Pakistan to the US company GameStop wants it? Michael Saylor, co-founder of MicroStrategy, now Strategy, which is one of the world's biggest Bitcoin holders, said it plainly in a Bloomberg interview this month: 'Winter is not coming back. We're past that phase. If Bitcoin's not going to zero, it's going to $1 million.' His confidence rests on the core principles of Bitcoin, which include scarcity, immutability and resistance to inflation, along with steadily growing demand. More nations are signalling openness to Bitcoin and companies across the globe are adding it to their balance sheets. I didn't really expect this kind of shift. Like many others, I was just curious and figured I'd just sell some to capitalise if the value went up. But starting in summer 2024, I noticed the smartest-seeming people in this space started announcing: they have no plans to sell their Bitcoin. Ever. (To quote Saylor's February post on X: 'Sell a kidney if you must; but keep the Bitcoin.') But how can you use it, I wondered? The answer to that question is becoming obvious. There's an entire financial ecosystem developing around Bitcoin — one where you can benefit from ownership, and its potential growth, without ever having to let go of it. That part takes some mental rewiring, too. You have to forget everything you think you know about finance. I won't pretend to grasp all the technical stuff, but there are a few practical ways people are using their Bitcoin — and they actually make a lot of sense. One is crypto-backed loans. You use your Bitcoin as collateral to get a loan in regular money (or stablecoins), so you can cover expenses or invest while still holding on to your BTC. When you pay back the loan with interest, your Bitcoin is returned to you. It's a simple idea, and platforms like Strike and Milo in the US are already offering these tools. The interest rates will seem very high, but given BTC's forecasted growth, this is no payday loan scheme. I recently heard John Vasquez, a trusted US crypto voice, talking about borrowing at 14 per cent to fund a cash-flow business. He expected to pay it off in 10 months — and felt confident doing it. Then there are people like Mark Moss, founder of Market Disruptors, who spoke at Bitcoin Mena in Abu Dhabi last year. He's built an entire five-year retirement strategy for mere mortals around Bitcoin loans. His theory? Accumulate Bitcoin, borrow against it as it grows and skip tax events by never selling — keeping the principal intact. Some are using these loans to buy real estate or invest in other assets. Others are covering their living costs while their Bitcoin (hopefully) continues to appreciate. Of course, if the market drops, there's always the risk of liquidation, which is scary. Another method that's catching on: earning passive income by depositing Bitcoin on reputable platforms, where it functions like an interest-bearing account. These platforms lend your BTC to institutional borrowers and pay you a portion of the interest. (Just like a bank would with regular money) Sounds good in theory — but it does mean leaving your crypto on an exchange, which many in the space advise against. I'm still figuring that one out. For those who want to ease in, there are crypto-linked debit and credit cards, which let you borrow against your Bitcoin and pay off the balance monthly — just like a regular credit card. I have my eye on that option, although I don't see it yet in the UAE. One product I can see myself using: the new Bitcoin Rewards Credit Card, launching in the US this autumn. It's a partnership between Coin base and American Express, offering four per cent back in Bitcoin on every purchase. Bitcoin as the new air miles? On that one, when I can get it, I'm all in. Bitcoin might still feel fringe or futuristic, but what's clear to me is this: the ecosystem is growing, the tools are evolving, and the more I learn, the more I want to know.
