Oil price today: Oil prices have jumped sharply while global stock markets and bond prices fell on Wednesday after US President Donald Trump announced that a memorandum of understanding with Iran aimed at ending the Gulf conflict was effectively finished.
Speaking in Ankara during a NATO summit, Trump expressed frustration with Tehran. “As far as I’m concerned, it’s just a waste of time dealing with them,” he said.
The remarks triggered a swift risk-off move among investors, already on edge following recent U.S.-Iranian military exchanges in the Gulf.
Oil price today: Oil prices spikeon supply concerns
Brent crude futures surged more than 8 per cent — the largest daily gain since late May — climbing to USD 80 per barrel. While still below the conflict peaks above USD 120, the move reintroduced inflation risks, especially with global oil inventories already depleted after months of disruptions.
“It’s clearly not what the market wants and it really weighs heavily on sentiment,” said Chris Beauchamp, chief market strategist at IG.
Analysts highlighted the critical role of the Strait of Hormuz. “The main thing is really whether or not the Strait of Hormuz remains open and we still see traffic (and) whether or not oil can continue to flow,” noted Khoon Goh, head of Asia research at ANZ in Singapore.
Recent data showing US Strategic Petroleum Reserve stocks at their lowest level since 1983 added to supply vulnerability concerns.
Bonds sell off, yields climb
Rising oil prices pushed bond yields higher. The benchmark 10-year US Treasury note yield rose for a seventh consecutive day to a one-month high of 4.58 per cent. In Europe, German 10-year yields climbed to 3.075 per cent and Italian yields reached 3.9 per cent, both marking one-month highs.
Stocks slide as risk appetite evaporates
European shares dropped 1.6 per cent, on track for the STOXX 600’s biggest one-day decline since mid-March.
US stock futures fell between 0.9 per cent and 1.3 per cent. The VIX volatility index jumped nearly 13 per cent in its largest one-day rise in over a month.
Samsung Electronics shares continued to slide for a second session despite the company forecasting a 19-fold rise in second-quarter profit. Investors remain wary of potential slowdowns in memory chip demand later in the year.
Market observers pointed to a broader rotation away from some high-valuation AI and semiconductor stocks.
“What you could see is the market looking for exactly what the pricing power will be, and that can mean that there are fluctuations in valuations,” said ING chief economist and global head of research Marieke Blom.
Blom added that increasing capital expenditure relative to EBITDA could reduce support for valuations through buybacks.
Dollar steady ahead of Fed minutes
In currency markets, the dollar gained ground, lifting the euro just above USD 1.14, while the yen traded near 162.5, close to 40-year lows.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
