While US and European stock markets rose on Friday, oil prices fell as worries of an escalation of the Iranian confrontation subsided. Global benchmark contract for crude After US President Donald Trump stated on Thursday that he will decide within the next two weeks over whether to join Israel’s strikes on Iran, Brent fell more than 2%, which impacted the share prices of key energy companies.
Iran’s Foreign Minister Abbas Araghchi met with top European diplomats in Geneva on Friday to explore a “diplomatic solution” to stop the war, and traders believed it implied Trump favoured talks to do so.
Friday saw a slight increase in US indexes, but experts predicted that volumes would be low since many traders would be taking a four-day vacation after Thursday’s Juneteenth holiday.
Asian equities indices ended the week neutral, while European stock markets traded higher in the afternoon.
The market attitude has improved, according to Kathleen Brooks, an analyst with trading company XTB, who stated that President Trump will postpone any decision to join Israel’s strikes against Iran. Brent crude has dropped. As traders price out the worst-case scenario for geopolitics,” she reported.
In recent sessions, investors priced in the possibility of lower oil supplies that would likely hinder economic development, which caused crude futures to surge and global shares to plummet as the Israel-Iran confrontation refused to abate.
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