Oil rises and US stock futures, Asian shares slip after US strike on Iran nuclear sites
NEW YORK (AP) — The price of oil rose and U.S. stock futures fell as global markets react to the U.S. strike against nuclear targets in Iran.
The price of Brent crude oil, the international standard, rose 2.6% to $79 a barrel. U.S. crude rose 2.6% to $75.76 a barrel.
On Saturday, U.S. forces attacked three Iranian nuclear and military sites, further increasing the stakes in the war between Israel and Iran.
Futures for the S&P 500 and the Dow Jones Industrial Average slipped 0.4%, while Nasdaq futures fell 0.5%. Treasury yields were little changed. The modest moves indicate markets are taking the latest development in stride.
That was evident in early Asian trading. Tokyo's Nikkei 225 index fell 0.6%. Other major regional markets also logged moderate declines.
The conflict, which began with an Israeli attack against Iran on June 13, has sent oil prices yo-yoing, which has in turn caused see-saw moves for the U.S. stock market, because of rising and ebbing fears that the war could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes.
'The situation remains highly fluid, and much hinges on whether Tehran opts for a restrained reaction or a more aggressive course of action,' Kristian Kerr, head of macro strategy at LPL Financial in Charlotte, North Carolina, said in a commentary.
An Iran retaliation that included closing off the waterway would be technically difficult to pull off but traders are afraid Iran could severely disrupt transit through it, sending insurance rates spiking and making shippers nervous to move without U.S. Navy escorts
Some analysts think Iran is unlikely to close down the waterway because the country uses it to transport its own crude, mostly to China, and oil is a major revenue source for the regime.
'It's a scorched earth possibility, a Sherman-burning-Atlanta move,' said Tom Kloza, chief market analyst at Turner Mason & Co. "It's not probable.'
Kloza thinks oil futures will ease back down after initial fears blow over.
Ed Yardeni, a long-time analyst, agreed, writing in a report that Tehran leaders would likely hold back.
'They aren't crazy,' he wrote in a note to investors Sunday. 'The price of oil should fall and stock markets around the world should climb higher.'
Other experts aren't so sure.
Andy Lipow, a Houston analyst covering oil markets for 45 years, said countries are not always rational actors and that he wouldn't be surprised if Tehran lashed out for political or emotional reasons.
'If the Strait of Hormuz was completely shut down, oil prices would rise to $120 to $130 a barrel,' said Lipow, predicting that that would translate to about $4.50 a gallon at the pump and hurt consumers in other ways.
'It would mean higher prices for all those goods transported by truck, and it would be more difficult for the Fed to lower interest rates.'
In Asian trading early Monday, Taiwan's Taiex fell 1.5% while the Kospi in South Korea lost 1%. Both Taiwan and South Korea rely heavily on oil imported through the Strait of Hormuz.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Oil gains and US stock futures, Asian shares slip after US strikes Iran nuclear sites
BANGKOK (AP) — Global markets appeared to take the U.S. strike against nuclear targets in Iran in stride as the price of oil initially jumped more than 2% but fell back slightly on Monday. U.S. stock futures and Asian shares declined. Investors were watching to see how Iran reacts, analysts said, while the U.S. military's strike on three Iranian sites raised urgent questions about what remains of Tehran's nuclear program. "I believe what we are thinking is or the thinking is that it is going to be a short conflict. The one big hit by the Americans will be effective and then we'll get back to sort of business as usual, in which case there is no need for an immediate, panicky type of reaction,' said Neil Newman, managing director of Atris Advisory Japan. The price of Brent crude oil, the international standard, was up 2% at $78.52 a barrel. U.S. crude also jumped, gaining 2% to $75.34 a barrel by midday Monday in Asia. The attacks Saturday raised the stakes in the war between Israel and Iran, and futures for the S&P 500 and the Dow Jones Industrial Average slipped 0.3%, while Nasdaq futures fell 0.5%. Treasury yields were little changed. The conflict began with an Israeli attack against Iran on June 13 that sent oil prices yo-yoing and rattled other markets. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes. Closing off the waterway would be technically difficult to pull off but it could severely disrupt transit through it, sending insurance rates spiking and making shippers nervous to move without U.S. Navy escorts 'The situation remains highly fluid, and much hinges on whether Tehran opts for a restrained reaction or a more aggressive course of action,' Kristian Kerr, head of macro strategy at LPL Financial in Charlotte, North Carolina, said in a commentary. Iran may be reluctant to close down the waterway because it uses the strait to transport its own crude, mostly to China, and oil is a major revenue source for the regime. 'It's a scorched earth possibility, a Sherman-burning-Atlanta move,' said Tom Kloza, chief market analyst at Turner Mason & Co. "It's not probable.' Kloza thinks oil futures will ease back down after initial fears blow over. Ed Yardeni, a long-time analyst, agreed, writing in a report that Tehran leaders would likely hold back. 'They aren't crazy,' he wrote in a note to investors Sunday. 'The price of oil should fall and stock markets around the world should climb higher.' Other experts aren't so sure. Andy Lipow, a Houston analyst covering oil markets for 45 years, said countries are not always rational actors and that he wouldn't be surprised if Tehran lashed out for political or emotional reasons. 'If the Strait of Hormuz was completely shut down, oil prices would rise to $120 to $130 a barrel,' said Lipow, predicting that that would translate to about $4.50 a gallon at the pump and hurt consumers in other ways. 'It would mean higher prices for all those goods transported by truck, and it would be more difficult for the Fed to lower interest rates.' In Asian trading early Monday, Taiwan's Taiex fell 1.3% while the Kospi in South Korea initially lost 1% but then regained some lost ground to be down 0.4%. Much of East Asia relies heavily on oil imported through the Strait of Hormuz. In Tokyo, the Nikkei 225 edged 0.1% lower, to 38,366.53, as losses for most shares were offset by gains for defense oriented stocks. Mitsubishi Heavy Industries climbed 0.8% and ShinMaywa Industries, another major weapons maker, surged 1.5%. 'The U.S. strike on Iran certainly is very good for defense equipment,' Newman of Atris Advisory said, noting that both Japan and South Korea have sizable military manufactoring hubs. Australia's S&P/ASX fell 0.4% to 8,470.10. Hong Kong's Hang Seng lost 0.1% to 23,498.82, while markets in mainland China advanced. The Shanghai Composite index picked up 0.2% to 3,365.07. In currency dealings, the U.S. dollar rose to 146.90 Japanese yen from 146.66 yen. The euro climbed to $1.1496 from $1.1473.
Globe and Mail
2 hours ago
- Globe and Mail
SteadyWise Unveils Next-Generation Debt Relief Program to Help Americans Take Control of Their Financial Future
An innovative, personalized approach to navigating debt relief with clarity, confidence, and control. SteadyWise, a next-generation debt relief company, is redefining debt relief for millions of Americans through its debt relief program. The consumer-first financial wellness company has designed a program that helps people understand their debt options clearly, making it easier to identify realistic, personalized solutions rather than generic one-size-fits-all solutions. Debt relief has proved to be a complex landscape for people to navigate. From consolidation strategies to non-profit debt management plans and settlement programs, individuals and families are presented with a lot of information and processes to sort through. According to SteadyWise, the majority of Americans drowning in debt do not know where to begin or even whether they qualify for legitimate relief options. Yet, they are served countless ads promising instant solutions, often without explaining how they work for each person's unique situation. As financial pressures rise for millions of Americans, SteadyWise is stepping in with a debt relief program that tackles this problem head-on. The smarter, personalized program puts people back in control of their financial future. 'With household budgets under siege from inflation, rising interest rates, and mounting debt, many Americans are struggling to stay afloat,' said Elige Carter, co-founder of SteadyWise. 'People are overwhelmed and unsure who to trust while their debts keep growing. That is why we founded SteadyWise. Our goal is to give people clarity, confidence, and help them make real savings.' The SteadyWise Debt Relief Program was created as an innovative financial assessment engine that takes a holistic view of an individual's financial life through custom consultations and personalized debt strategies. SteadyWise pairs individuals with its team of debt relief specialists who work closely with people to analyze their debt profile, income, expenses, and financial goals. From there, the specialists map out debt relief options that make sense for the individual and their unique needs. Whether it is reducing interest rates, shortening payoff timelines, or lowering the monthly payments, the program identifies the best way for people to get rid of fast – and fits into their lifestyle and goals. To match people with the right financial solution, SteadyWise's debt relief program has five simple steps. In step one, individuals are prompted to submit their application, which helps them connect with a certified debt consultant to review their financial profile. After reviewing, the consultant recommends either a consolidation strategy, non-profit debt management plan, or other structured debt relief solutions. In step two, individuals work with the consultant to review their options and tailor a debt relief plan that will help them consolidate their debt in line with their lifestyle and financial goals. In step 3, SteadyWise consultants guide individuals as they choose a plan of action, and in step 4, they begin tracking their progress. SteadyWise provides access to an online dashboard where people can monitor their progress. The last step to the SteadyWise debt relief program is for individuals to become debt-free and regain control of their financial journey. Unlike many debt relief services, SteadyWise is built around personalization and flexibility. The company works with a network of trusted partners, from non-profit credit counselors to accredited lenders, to ensure users get the best-fit debt relief option for their situation rather than the most profitable one. Through this approach, SteadyWise has established itself as a standout debt relief company and has helped many individuals and families start their journey to financial freedom. In addition to the debt relief program, SteadyWise provides financial education by demystifying debt relief. Elige shared that the lack of understanding around the subject has contributed to the confusion and frustration many Americans feel. SteadyWise, through its website, blog, program, and social media pages, seeks to clarify what debt relief really is, expose the red flags that many miss, and educate people on the debt relief options available to them, including debt relief/settlement, debt management plans, and personal loans. SteadyWise is built on the belief that debt relief should be accessible, understandable, and customized. The company is filling a critical gap in the market by offering context that guides people to solutions tailored to their real-life needs. SteadyWise's debt relief program is now available at 'Whether you are overwhelmed by debt or just unsure of your options, our program provides the bridge between where you are and where you want to be,' concluded Elige. Media Contact Company Name: SteadyWise Contact Person: Elige Carter Email: Send Email Country: United States Website:
CBC
3 hours ago
- CBC
Credit card debt is down in Canada — but household debt is up
Mark Ting, a partner with Foundation Wealth and On The Coast's personal finance columnist, says that while credit card debt going down may seem like a good thing, he's seeing borrowers tack on their debt to larger loans like mortgages. He shares tips on how to manage your debts and credit cards amid financial uncertainty.
