Oil Prices Plummet Below $80 as Trump Issues Threats Amid US-Iran Peace Deal
Oil prices took a hit, with US crude dropping 1.25 percent to $75.83 a barrel and Brent crude falling 1.4 percent to $78.41 per barrel, as the US and Iran signed an interim peace deal that many view as fragile.
President Donald Trump signed the agreement, extending a ceasefire from April by another 60 days, but he didn’t hold back on threats. He warned of resuming attacks and targeting Iranian officials if they fail to uphold their end of the deal.
Asian stocks remained steady amid this geopolitical tension. MSCI's broadest index of Asia-Pacific shares outside Japan was flat, while Japan's Nikkei share average surged past the 71,000 mark for the first time, driven by gains in semiconductor and AI-related stocks.
South Korean shares climbed 0.9 percent, and US stock futures showed a positive trend, with S&P 500 e-minis up 0.81 percent at 7,484.8.
Market analysts like Kyle Rodda from Capital.com noted that major geopolitical risks continue to loom large, influencing market movements.
On Wall Street, all three major indexes experienced declines of close to or more than one percent. The Dow Jones Industrial Average fell 507.12 points, or 0.98 percent, to 51,492.55. The S&P 500 dropped 91.25 points, or 1.21 percent, to 7,420.10, while the Nasdaq Composite decreased by 354.69 points, or 1.34 percent, to 26,021.66.
The yield on benchmark 10-year Treasury notes rose to 4.471 percent compared to its previous close of 4.463 percent. The two-year yield also increased, reaching 4.1759 percent against a US close of 4.163 percent.
The Bank of England was set to meet on Thursday, with no rate changes anticipated, focusing instead on the tone of policymakers' commentary.
The dollar edged up by 0.01 percent against the yen to 160.65 after hitting a high of 160.79 overnight, marking its peak since July 2024.
Despite recent oil price declines easing fears of an economic slowdown in energy-importing Europe, the International Energy Agency projected a significant supply surplus in the oil market by 2027 following recovery from disruptions in the Strait of Hormuz.
