1. Markets React to De-escalation Signals
o Global financial markets surged after U.S.
President Donald Trump canceled planned strikes on
Iran and suggested a peace agreement could be reached soon.
2. Uncertainty Remains
o Iran indicated that no final agreement has
yet been concluded, keeping some uncertainty around the conflict's outcome.
3. Brent Crude Falls Sharply
o Brent crude, the
global oil benchmark, dropped more than 4% to
around $86 per barrel.
o This marked its lowest level in several
weeks.
4. U.S. Oil Prices Also Decline
o West Texas Intermediate (WTI) crude
fell about 4% to
approximately $84 per barrel.
5. Reduced Geopolitical Risk Premium
o The decline reflects easing fears of
supply disruptions in the Middle East and potential reopening of normal energy
trade routes.
6. Wall Street Momentum Continues
o U.S. stock futures pointed higher
following a strong rally on Wall Street.
o Investors responded positively to reduced
geopolitical tensions and lower energy prices.
7. Focus on SpaceX IPO
o Market attention is also centered on the public debut of SpaceX,
which reportedly launched trading at a valuation approaching $1.8
trillion.
8. Asian Markets Surge
o Major Asian indices posted strong gains:
§ KOSPI rose
over 4%.
§ Japanese markets gained nearly 3%.
§ Markets in China, Hong Kong, and Taiwan
also advanced.
9. European Stocks Advance
o The STOXX
Europe 600 gained nearly 2%.
o Most major European markets recorded
broad-based gains.
10. Gasoline Prices Begin to Ease
o U.S. gasoline prices fell by 2
cents to a national average of $4.11
per gallon.
o However, prices remain nearly 40%
higher than before the conflict.
11. Diesel Prices Remain Elevated
o Average diesel prices declined slightly to
$5.26 per gallon.
o Diesel prices are still around 40%
above pre-war levels.
12. Fuel Prices Lag Oil Movements
o Retail gasoline and diesel prices
typically adjust with a delay and may take several days to fully reflect
changes in crude oil prices.
·
Signals
that markets are highly sensitive to developments in the Middle East conflict.
·
Lower
oil prices reduce inflationary pressures and ease concerns about global
economic growth.
·
Energy-importing
economies in Asia and Europe benefit from cheaper crude oil.
·
Falling
fuel prices could provide relief to consumers and businesses if the decline is
sustained.
·
Investors
remain focused on whether diplomatic efforts can produce a lasting settlement
and stabilize energy markets.
[ABS News Service/12.06.2026]
Oil
prices plunged to their lowest level in weeks and stocks rallied on Friday (12.06.2026)
after President Trump called off plans for another day of strikes on Iran, saying
that a peace deal could be within reach.
The
gains in stock markets across Europe and Asia followed a strong rally on Wall Street
on Thursday. Mr. Trump had threatened a third straight day of strikes on Iran before
canceling the operation and saying that an agreement could
be signed as soon as this weekend. Iran’s state broadcaster, quoting the spokesman
for the country’s foreign ministry, said “nothing has been finalized.”
Oil prices plunge.
·
The
price of Brent crude, the global benchmark for oil, dropped more 4 percent, to about
$86 a barrel. Oil last traded near that level in March, shortly after the outbreak
of the war.
·
West
Texas Intermediate crude, the U.S. benchmark, also fell about 4 percent, to around
$84 a barrel
Global stocks surge, as U.S.
traders await a mega I.P.O.
·
Futures
on the S&P 500 pointed to a modest increase when stocks resume trading in the
United States on Friday. All eyes will be on SpaceX, which priced its public offering
on Thursday and begins trading on Friday, at an initial valuation of nearly $1.8
trillion.
·
Stocks
in Asia, where countries import vast quantities of oil and gas, were higher across
the board. South Korea’s benchmark KOSPI rose more than 4 percent, while stock markets
in Japan rose nearly 3 percent. Shares were higher in mainland China, Hong Kong
and Taiwan.
·
In Europe,
stocks also jumped. The Stoxx 600, a broad-index that tracks the region’s largest
companies, rose nearly 2 percent. All major markets in the region posted gains.
Gasoline prices fall.
·
Gas
prices dropped two cents on Friday, falling to a national average of $4.11 a gallon,
according to the AAA motor club. Gas prices have risen by nearly 40 percent since
the war began.
·
Gas
prices don’t move in lock step with crude, usually trailing increases or drops by
a few days.
·
The
average price of diesel fell to $5.26 on Friday, up 40 percent since the start of
the war.