Amid peace talks, oil prices experienced a temporary drop following Iranian reports suggesting that U.S. officials had agreed to lift sanctions on Iranian crude. However, with no confirmation of these reports and Iranian statements regarding taxing travel through the Strait of Hormuz, oil prices quickly rebounded. Meanwhile, President Donald Trump announced a delay in a planned military strike on Iran after requests from Gulf leaders, contributing to mixed reactions in global stock markets.
In a statement on social media, Trump mentioned he would “hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow.” This decision came after Qatar, Saudi Arabia, and the United Arab Emirates requested a pause as serious negotiations were underway. Tom Siomades, chief market economist at AE Wealth Management, noted the volatility driven by the evolving situation with Iran, highlighting how the U.S. markets are oscillating between geopolitical concerns and technology sector developments.
In the broader market context, European stocks finished the day on a positive note, while U.S. indices showed mixed results, with the Dow slightly up and the Nasdaq and S&P 500 experiencing minor declines. Investors are keeping a close watch on bond yields, which have risen globally amid concerns that inflation might dampen economic growth and increase deficits. The upcoming earnings report from Nvidia is also drawing attention as investors assess the impact of significant investments in AI data centers.
Asian markets showed varied outcomes; Seoul’s stock market closed slightly higher, continuing its recent upward trend fueled by the AI spending surge. In contrast, Tokyo’s Nikkei 225 fell, although shares in memory chip maker Kioxia surged 16% following a strong quarterly performance. Kioxia, a major player in NAND flash memory chips used in AI data centers, reported a remarkable operating profit forecast, attributing its success to the booming AI demand.
Key market figures showed Brent crude rising by 2.6% to $112.10 per barrel, while West Texas Intermediate increased by 3.1% to $108.66 per barrel. The Dow closed up 0.3% at 49,686.12, whereas the S&P 500 and Nasdaq ended down 0.1% and 0.5% respectively. European indices like London’s FTSE 100 and Frankfurt’s DAX 30 saw gains, while Asian markets had mixed results with Tokyo’s Nikkei 225 and Hong Kong’s Hang Seng Index closing lower. Currency exchanges showed the Euro climbing against the dollar and pound, while the dollar gained slightly against the yen.