CNBC Daily Open: Markets exhale as Trump steps back, OPEC+ steps up
Trump's canceled strike on Iran and an OPEC+ output hike drained the war premium from oil over the weekend, sending crude lower and stock futures higher.
On Tuesday, President Trump announced the cancellation of a planned military strike on Iran, which led to a significant drop in oil prices as investors reassessed the risk premium. The move came after OPEC+ announced a production quota increase of around 188,000 barrels per day, beginning in September, signaling a rollback of the 1.65 million barrels per day cut from 2023.
Both actions were seen as efforts to ease tensions and calm oil markets. In a related development, Japan and the U.S. confirmed their collaboration to support the yen, marking their first joint foreign-exchange intervention since 2011. This came as the dollar weakened, trading at 157.84 yen, a sharp contrast from its near 40-year low of 164 last week.
Notably, Berkshire Hathaway shares experienced an eight-month peak, ending the day at $511.54, up 5.2% from their previous record close. Additionally, AstraZeneca and Bristol Myers Squibb were reportedly in merger talks, which could value the combined entity at approximately $400 billion, making it one of the largest deals in history.
Meanwhile, India's youth unemployment crisis intensified following an exam leak that forced a retest of the highly competitive medical entrance exam, sparking nationwide protests from students.
Written by urgent.news from CNBC World's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
