US Oil Prices Fall Amid Mixed Signals on Iran Peace Deal

Japan’s Stock Market Hits Record High Amid US-Israel War on Iran Hopes

The Nikkei 225 index in Japan surged over 3% in morning trading, reaching an all-time high. The benchmark stock index closed at a record peak on Friday. Oil prices fell sharply as the US President Donald Trump gave mixed signals on the prospects for a deal to end the US-Israel war on Iran.

Brent crude futures for July stood at $98.47 a barrel as of 01:05 GMT, down about 9% from a month ago but still up by more than a third compared with before the start of the war. The price drop came after Trump announced that negotiations with Tehran were proceeding in an “orderly and constructive manner” on Sunday.

Trump instructed officials not to rush into a deal, stating that both sides must take their time and get it right. He also warned that there can be no mistakes. The remarks came after he raised hopes for a breakthrough on Saturday by announcing that a deal had been largely negotiated, with the terms including the reopening of the Strait of Hormuz.

Iran has effectively blockaded the strait since the start of the war in late February, disrupting about one-fifth of the global oil trade. The US has imposed its own blockade of Iranian ports since mid-April, further disrupting commercial shipping in the waterway. As a result, oil prices have fallen sharply amid tentative hopes for a deal to end the conflict.

According to June Goh, a senior oil market analyst at Sparta in Singapore, markets are likely to remain on edge for some time after any deal is finalised. She estimated that it may take about three to six months to get everything back to status quo, including time to bring production and refineries back online.

Source: Al Jazeera