Economy

Oil soars after Trump declares end of ceasefire with Iran

The price of oil soared in international markets this Wednesday, after United States President Donald Trump stated that the ceasefire with Iran was “over” and called Iranian leaders “scum” and liars. Not long ago, a...

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Oil soars after Trump declares end of ceasefire with Iran
Noticias ao Minuto - Economia

The price of oil soared in international markets this Wednesday, after United States President Donald Trump stated that the ceasefire with Iran was “over” and called Iranian leaders “scum” and liars.

Not long ago, a barrel of Brent rose almost 6%, quoted at US$78.44, according to Investing.

On Tuesday, Brent oil for delivery in September had already closed trading on the London futures market up 3.01%, at US$74.16, after new attacks on tankers in the Strait of Hormuz.

“As far as I’m concerned, it’s over,” Trump told reporters on the sidelines of the NATO summit, which ends this Wednesday in Ankara, the capital of Turkey.

The American president stated that he “doesn’t want to deal with these people anymore” and called Iranian leaders “scum”, “liars” and “violent and cruel people who, if they had a nuclear weapon, would use it”.

European stock markets also reacted by falling. The continent's markets continued the negative trend registered at the end of Tuesday's session, with investors paying attention to the Middle East and worried about a possible bubble in the artificial intelligence sector.

At 8:35 am in Lisbon, the EuroStoxx 600 fell 0.67%, to 641.95 points.

At the same time, Frankfurt fell 1.01%, Madrid lost 0.83%, Paris fell 0.76%, London fell 0.73% and Milan lost 0.52%.

Later this Wednesday, the minutes of the June meeting of the United States Federal Reserve committee will be released. The concrete effects, however, should only be felt by the market on Thursday, as the publication will take place after the European stock exchanges close.

Investors' attention has once again turned to the Middle East after new US attacks on Iranian positions in the Strait of Hormuz, in retaliation for Revolutionary Guard offensives against merchant ships.

Uncertainty raised the price of oil again. Brent for delivery in September rose more than 3%, to US$76.47, while WTI rose 3.05%, to US$72.59.

On Tuesday, Wall Street closed lower, pressured by shares in the semiconductor and communication network equipment sectors. The energy sector performed best.

The Dow Jones fell 0.25%, the S&P 500 fell 0.45% and the Nasdaq lost 1.16%.

The International Monetary Fund updates its outlook for the world economy this Wednesday. In April, the IMF had projected global growth of 3.1% and global inflation close to 4.4%.

The NATO summit continues this Wednesday in Ankara, Turkey, after the announcement, on Tuesday, of new military acquisitions worth US$50 billion, approximately R$262.2 billion.

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Source: Noticias ao Minuto - Economia

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