Energy markets react to supply risks
Oil prices climbed on Monday as ongoing Middle East tensions and stalled US-Iran diplomacy unsettled energy markets. Brent crude rose 2.75% to settle at $108.23 per barrel, while US West Texas Intermediate gained 2.09% to $96.37. Traders continued to assess disruptions to shipping through the Strait of Hormuz following US-Israeli strikes on Iran earlier this year.
At the same time, market sentiment improved slightly after the White House confirmed that President Donald Trump is reviewing a new Iranian proposal. According to Iranian sources, the plan suggests delaying nuclear discussions until the conflict ends and shipping disputes ease. Meanwhile, Pakistani mediators indicated that efforts to bridge differences between Washington and Tehran remain underway.
Investors balance optimism with caution
Broader financial markets showed modest gains as investors balanced geopolitical risks with cautious optimism. MSCI’s global equities index edged higher, supported by expectations that diplomacy could eventually ease tensions. However, analysts noted that uncertainty continues to weigh on investor confidence.
On Wall Street, the Dow Jones Industrial Average slipped slightly, while the S&P 500 and Nasdaq posted modest gains. In Europe, the STOXX 600 index closed marginally lower. Investors also prepared for a busy week featuring major corporate earnings, key economic data, and central bank decisions.
Attention now turns to US economic growth figures and the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures index. Additionally, major technology firms are set to release quarterly results, shaping market direction.
Meanwhile, currency markets remained cautious, with the US dollar easing slightly. Treasury yields edged higher, reflecting shifting expectations around interest rates. Gold prices declined as investors reassessed risk.
