Oil prices slide amid confusion over Iran, concern over Japanese yen
Oil prices dropped Monday after President Trump called off an apparent strike on Iran, and then said the U.S. was starting diplomatic talks. Iran denied the claim. David Uberti, a reporter for The Wall Street Journal, has more.
Oil prices plummeted by 5% on Monday as US President Donald Trump called off planned strikes against Iran, while global markets rallied. Brent crude fell to $83.47 a barrel, down 5%, and US West Texas Intermediate dropped below $79.47 a barrel, also a 5% decline. Despite the oil price drop, European shares rose, and US stock futures indicated a higher opening on Wall Street.
The Stoxx 600 index increased by 0.5%. While energy stocks dipped by 2%, travel and leisure shares gained 2.1%. UK motorists faced rising fuel costs, with petrol peaking at 160.85p per litre and diesel exceeding 180p per litre for the first time since June. The UK's FTSE 100 index gained 30 points, despite being impacted by negative reactions to AstraZeneca's potential tie-up with Bristol Myers Squibb.
US Treasury yields fell, with the benchmark 10-year bond yield dropping five basis points to 4.68%. Opec+ decided to boost oil production by 188,000 barrels a day in September, but production increases faced challenges due to disruptions from the Iran-Ukraine conflicts. The Japanese yen reached a three-month high after Tokyo and Washington collaborated to support the currency.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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