Stocks Rally Falters, Oil Rises as US-Iran Talks Postponed

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 18, 2026.  REUTERS/staff
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 18, 2026. REUTERS/staff
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Stocks Rally Falters, Oil Rises as US-Iran Talks Postponed

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 18, 2026.  REUTERS/staff
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 18, 2026. REUTERS/staff

Stock markets were mixed on Friday and oil prices rose after Switzerland said planned talks following up on the US-Iran agreement had been postponed, dealing a blow to the week-long rally.

Equities have been on a tear since the two announced last weekend that they would end their three-month conflict and reopen the Strait of Hormuz, fueling global relief as economies have been hit by energy shortages and surging inflation.

The agreement has been signed separately by US President Donald Trump and his Iranian counterpart Masoud Pezeshkian, and approved by Iran's supreme leader.

That was meant to signal the beginning of 60 days of talks on wider issues, including Tehran's nuclear program.

But Swiss officials said they would not start on Friday as expected, hours after US Vice President JD Vance's departure for the country was cancelled, with a spokesperson saying the "logistics of these negotiations have never been simple or predictable".

The deal was also meant to halt the fighting in Lebanon, but Israel's military announced new strikes against Hezbollah targets in the nation's south. Lebanon has been a major sticking point in reaching a US-Iran deal.

"The planned talks between the US, Iran, Qatar and Pakistan have been postponed," the Swiss foreign ministry said in a message to AFP.

"Switzerland remains ready to facilitate these talks. The relevant preparatory work at Burgenstock is continuing," it said, without providing a new date for the talks.

Iran's Tasnim news agency had said "nothing has been confirmed" about the Tehran delegation's trip to Switzerland.

The news sparked a reverse in several equity markets that had been heading for a positive end, with profit-taking adding to the selling.

Seoul, which has hit multiple records this week and topped 9,000 points for the first time on Thursday, ended in the red after a strong start to the day led by tech firms.

There were also losses in Tokyo, Singapore, Sydney, Mumbai, Bangkok and Jakarta but Tokyo, Wellington and Manila edged up.

London dipped at the open but Paris and Frankfurt rose.

Oil prices, which have tanked around 10 percent this week, climbed with West Texas Intermediate up around 1.8 percent.

"With the deal signed, that geopolitical cloud is lifting, but markets have learned more than once that a resolution can unravel quickly," Josh Gilbert, at eToro, said.

"The hard work starts now, and investors will likely be cautious until we've got an air-tight deal and traffic genuinely flowing in full through the strait again."

American forces lifted on Thursday their naval blockade of Iranian ports that had prevented ships from sailing to or from the Iranian republic, the US military said, noting that its warships "will remain in the general area".

Activity was still muted in the Strait of Hormuz, the strategic bottleneck for energy shipments that Iran blockaded during the conflict.

Observers have pointed out that while the waterway -- through which about a fifth of crude passes -- has reopened, it could take some time before supplies are back up to pre-war levels.

The US-Iran agreement had allowed investors to look past Tuesday's Federal Reserve meeting, which ended with officials indicating they could hike interest rates before the end of the year owing to elevated inflation caused by the war.

Still, Forex.com's Fawad Razaqzada said traders would turn their focus back to the economic outlook.

"What is almost certain to happen now is that markets will become increasingly data-dependent once again. For now, equity bulls maintain some control," he wrote in a commentary.

"However, with valuations still elevated and a lack of obvious near-term catalysts, the prospect of profit-taking or a modest correction has become more plausible following the Fed's hawkish pivot."

The yen strengthened but remained above 161 per dollar -- and near its weakest level since 1986 -- after this week's jump fueled by Fed rate hike expectations.

The yen's gains were also helped by comments from Japan's Finance Minister Satsuki Katayama, who warned of "bold action against excessive speculative moves in the foreign-exchange market".

The government spent around 11.7 trillion yen ($72 billion) last month propping up the currency by intervening in financial markets.

The currency was still in trouble despite the Bank of Japan's decision to hike interest rates on Tuesday to their highest since 1995.



Saudi Arabia’s Bahri Signs $451 Million Deal to Build Three VLCCs

A Bahri vessel (company website).
A Bahri vessel (company website).
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Saudi Arabia’s Bahri Signs $451 Million Deal to Build Three VLCCs

A Bahri vessel (company website).
A Bahri vessel (company website).

The national shipping carrier of Saudi Arabia, Bahri, has signed a contract with International Maritime Industries (IMI) to build and deliver three very large crude carriers (VLCCs) for a total value of about $451 million (1.692 billion riyals), the company said.

Each vessel will have a capacity of 320,000 deadweight tons, with the three tankers scheduled for delivery in phases during 2029 and 2030, Bahri said in a disclosure published on the Saudi Exchange (Tadawul) website.

The financial impact of the contract will be reflected in the company's financial statements after the vessels are received and begin commercial operations. The contract will run until delivery of the final tanker, it added.

The agreement is part of Bahri's strategy to modernize its fleet and expand its long-term operational capacity, strengthening its ability to respond to changing requirements in global energy and shipping markets.

It also supports Saudi Arabia's efforts to develop a globally competitive maritime sector by localizing shipbuilding capabilities and related maritime supply chains, in line with the objectives of its Vision 2030 economic transformation program.

With the signing of the agreement, the number of vessels being built in Saudi Arabia for Bahri will rise to nine, comprising six dry bulk carriers and three very large crude carriers.

Bahri said it would finance the contract through a combination of internal cash resources and bank facilities.


Egypt: Positive Results from Nargis-2 Natural Gas Well in Mediterranean

Egyptian Petroleum Minister inspects the start of drilling operations at the Nargis gas field in the Mediterranean Sea (Ministry of Petroleum)
Egyptian Petroleum Minister inspects the start of drilling operations at the Nargis gas field in the Mediterranean Sea (Ministry of Petroleum)
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Egypt: Positive Results from Nargis-2 Natural Gas Well in Mediterranean

Egyptian Petroleum Minister inspects the start of drilling operations at the Nargis gas field in the Mediterranean Sea (Ministry of Petroleum)
Egyptian Petroleum Minister inspects the start of drilling operations at the Nargis gas field in the Mediterranean Sea (Ministry of Petroleum)

Egypt's Ministry of Petroleum and Mineral Resources and US energy major Chevron announced Saturday positive results from drilling the Nargis-2 natural gas well in the Mediterranean Sea, which began in May in cooperation with Chevron, its partners and the Egyptian Natural Gas Holding Company (EGAS).

In a statement, the ministry said the results support ongoing efforts to appraise the Nargis discovery, made in 2022, and accelerate its commercial development as one of Egypt's undeveloped gas discoveries.

The Nargis-2 appraisal well confirmed the extension of gas-bearing reservoirs previously encountered at Nargis-1 and identified an additional gas-bearing reservoir with favorable characteristics, supporting efforts to assess the area's gas resources and potential development opportunities.

The ministry said drilling operations were designed to evaluate the extent of the Nargis discovery and test deeper geological formations as part of efforts to expand exploration activities and maximize the Mediterranean's promising potential, including high-pressure, high-temperature formations.

The well reached a total depth of more than 5,000 meters, with appraisal results indicating gas-bearing reservoirs containing up to 35 meters of net pay.

According to the statement, these findings provide a positive indication supporting further technical studies to determine the discovery's overall potential and assess development opportunities.

The results align with the ministry's strategy to accelerate the development of undeveloped discoveries, encourage investment partners to intensify exploration activities and convert discovered resources into reserves that can be developed and brought into production, helping increase domestic natural gas output.

Egyptian Minister of Petroleum and Mineral Resources Karim Badawi witnessed the start of drilling operations at Nargis-2 in May aboard the Stena Forth drillship.

At the time, he emphasized the importance of accelerating the appraisal and development of undeveloped gas discoveries and strengthening cooperation with international energy companies to capitalize on Egypt's promising oil and gas resources.

Chevron operates the Nargis Offshore Concession in partnership with Italy's Eni, the UAE's Mubadala and Egypt's Tharwa Petroleum Company.


Global Equity Funds Attract Inflows for 5th Consecutive Week

NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP
NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP
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Global Equity Funds Attract Inflows for 5th Consecutive Week

NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP
NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP

Global equity funds attracted inflows for a fifth consecutive week in the week through October 21, as easing Treasury yields and strong early corporate earnings lifted investor sentiment.

Global equity funds drew net inflows of $28.16 billion during the week, compared with $19.88 billion in the previous week, LSEG Lipper data showed.

The benchmark 10-year US Treasury yield fell about 15 basis points last week and dropped below the psychologically significant 5% level this week, Reuters reported.

Fund investors were encouraged by better-than-expected corporate earnings so far this reporting season.

Of the nearly 18% of MSCI All Country World Index constituents that have ⁠reported earnings to date, ⁠about 73% have exceeded the average analyst estimate, according to LSEG data.

The MSCI World Index, however, fell 1.31% on Thursday after Meta reported strong results on Wednesday but unveiled plans to issue non-voting stock, reviving concerns about its growing capital commitments.

NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP

By region, Asian equity funds attracted $11.53 billion, their largest weekly ⁠inflow since at least December 2022. Investors also added $9.14 billion to European equity funds and $5.07 billion to US equity funds.

Among sectoral funds, technology attracted $5.05 billion, reversing net sales of $4.77 billion in the previous week. Investors also bought $1.83 billion in healthcare sector funds but sold a notable $1.29 billion in consumer discretionary sector funds.

Global bond funds remained popular for a fifth consecutive week, attracting net inflows of $9.44 billion.

Swiss franc-denominated bond funds drew $6.8 billion, their largest weekly inflow since at least November 2024. ⁠Investors also added ⁠a significant $2.78 billion to short-term bond funds, while pulling $1.68 billion from high-yield bond funds and $550 million from government bond funds.

Money market funds attracted weekly net inflows of $15.86 billion, following net outflows of $47.51 billion the previous week.

Among commodities, gold and other precious metals funds attracted net inflows of $1.29 billion, marking their fifth week of net purchases in the past six weeks. Investors also added $41.5 million to energy funds.

Data covering 29,174 emerging market funds showed that investors bought $6.28 billion worth of equity funds — the largest weekly net purchase since August 5. However, they withdrew a marginal $48.72 million from bond funds.