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Asian Shares Rise, Tracking Wall Street Gains as Trump Backs Down on Greenland

Traders work in front of screens at Hana Bank in Seoul (EPA)
Traders work in front of screens at Hana Bank in Seoul (EPA)
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Asian Shares Rise, Tracking Wall Street Gains as Trump Backs Down on Greenland

Traders work in front of screens at Hana Bank in Seoul (EPA)
Traders work in front of screens at Hana Bank in Seoul (EPA)

Asian shares mostly advanced on Thursday, tracking Wall Street, after US President Donald Trump walked back from imposing tariffs on eight European countries over Greenland and ruled out using military force to take control of the territory.

The future for the S&P 500 gained less than 0.1% and that for the Dow Jones Industrial Average was virtually flat on Thursday, The Associated Press reported.

Tokyo’s Nikkei 225 climbed 1.7% to 53,688.89, with technology stocks leading gains. SoftBank Group jumped 11.6% and equipment maker Disco Corp. soared 17.1%. Advantest, which makes testing equipment for computer chips, surged 5%.

South Korea’s Kospi closed 0.9% higher at 4,952.44 after crossing the 5,000 mark for the first time, as traders cheered. Technology-related stocks drove the rally. Shares of chipmaker SK Hynix picked up 2%, while Samsung Electronics rose 1.9%.

Hong Kong’s Hang Seng edged less than 0.1% higher to 26,600.68. The Shanghai Composite index edged 0.1% higher to 4,122.58.

In Australia, the S&P/ASX 200 gained nearly 0.8% to 8,848.70.

Taiwan’s Taiex rose 1.6%, while India’s Sensex added 0.2%.

US markets logged their biggest losses since October on Tuesday as investors reacted to Trump’s threat over the weekend to slap tariffs of 10% on Denmark, Norway, Sweden, Germany, France, the United Kingdom, the Netherlands and Finland for opposing US control of Greenland, sparking concerns over worsening relationships between the US and its European allies.

But Trump, attending the World Economic Forum in Davos, Switzerland, backed down on Wednesday and said he would not use force to acquire Greenland. The US president also said in a post on his social media site that he had agreed with the head of NATO on a “framework of a future deal” on Greenland and on Arctic security.

The easing tensions drove Wall Street optimism. On Wednesday, the S&P 500 climbed 1.2% to 6,875. The Dow Jones Industrial Average gained 1.2% to 49,077.23, while the Nasdaq composite also rose 1.2%, to 23,224.82.

Halliburton, the oil field services company, jumped 4.1% following stronger-than-expected profits for the latest quarter. United Airlines rose 2.2% also after better-than-expected quarterly profits. Netflix fell 2.2% even as it reported a stronger profit than expected, as investors focused on factors including a slowing growth of subscribers.

The price of gold fell 0.2% to $4,828.70 per ounce, reflecting investors’ reduced worries, after passing the $4,800 mark ahead of Trump’s reversal of stance on Greenland as many flocked to safe-haven assets.

In the bond market, US Treasury yields also eased following lessened fear among investors as well as a calming of Japan’s bond market turmoil. The yield on the 10-year Treasury eased to 4.25% from 4.30% late Tuesday.

Japan’s long-term bond yields surged to records earlier this week after Prime Minister Sanae Takaichi’s decision to call a snap election in February. That sparked concerns over her pledges to cut taxes and increase spending, which could hinder efforts to rein in government debt.

The US dollar rose to 158.75 Japanese yen from 158.27 yen, prompting analysts to speculate that authorities might intervene if the yen falls any further.

The euro rose to $1.1692 from $1.1687.

US benchmark crude oil shed 16 cents to $60.46 per barrel. Brent crude, the international standard, fell 24 cents to $65.00 per barrel.

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Business

Gold Steady as Investors Await Details of US-Iran Deal, Fed Verdict

People walk past a gold business shop at the Grand Bazaar in Istanbul, Türkiye, Tuesday, June 16, 2026. (AP)
People walk past a gold business shop at the Grand Bazaar in Istanbul, Türkiye, Tuesday, June 16, 2026. (AP)
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Gold Steady as Investors Await Details of US-Iran Deal, Fed Verdict

People walk past a gold business shop at the Grand Bazaar in Istanbul, Türkiye, Tuesday, June 16, 2026. (AP)
People walk past a gold business shop at the Grand Bazaar in Istanbul, Türkiye, Tuesday, June 16, 2026. (AP)

Gold prices were steady on Wednesday, near a one-week high, as investors awaited further details on the US-Iran agreement and the Federal Reserve's policy decision from Kevin Warsh's debut meeting as Chair.

Spot gold was flat at $4,331.29 per ounce, as of 0420 GMT. U.S. gold futures for August delivery was down 0.1% at $4,351.40.

Bullion touched an ‌over one-week ‌high of $4,370.82 on Monday.

Details of a US-Iran interim deal ‌to ⁠end the conflict ⁠are emerging, with President Donald Trump saying it would rule out a nuclear weapon for Tehran and a US official saying it would allow Iran to sell oil once signed.

Oil prices hovered near a three-month low on expectations of Iranian supply, easing inflation concerns.

"The rally (in gold) is losing some steam as all eyes turn to the ⁠monetary policy announcement from the Fed," said Ilya Spivak, ‌head of global macro at ‌Tastylive.

"This marks the first FOMC meeting to be chaired by Kevin Warsh and ‌traders still seem unsure about how he will reconcile a ‌hawkish record, rising inflation, and pressure from a White House demanding a dovish pivot," Spivak said.

Most Fed policymakers now feel they will need to keep US short-term borrowing costs on hold all year, projections due out later ‌in the day are expected to show, with a small number seen penciling in a rate ⁠hike to ⁠stop a spike in inflation from getting entrenched in the economy.

Traders see a 59% chance of a US rate hike in December, down from about 70% last week before the US-Iran peace deal announcement, according to the CME FedWatch tool.

Gold tends to lose appeal when rates are high, as it does not yield interest.

"Over the longer term, structural support (for gold) is expected to persist, driven by ongoing Asian demand and continued central bank purchases as a hedge against geopolitical and policy risks," Westpac analysts wrote in a research note.

Spot silver fell 0.2% to $70.05 per ounce, platinum lost 0.7% to $1,792.05, and palladium was down 0.8% at $1,341.23.

Business

Oil Dips as Investors Weigh Deal on Iran War as Uncertainty Persists on Hormuz

A person prepares to pump gas at a Valero gas station on June 16, 2026 in Austin, Texas. (Getty Images via AFP)
A person prepares to pump gas at a Valero gas station on June 16, 2026 in Austin, Texas. (Getty Images via AFP)
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Oil Dips as Investors Weigh Deal on Iran War as Uncertainty Persists on Hormuz

A person prepares to pump gas at a Valero gas station on June 16, 2026 in Austin, Texas. (Getty Images via AFP)
A person prepares to pump gas at a Valero gas station on June 16, 2026 in Austin, Texas. (Getty Images via AFP)

Oil prices inched lower on Wednesday, extending the previous session's declines as investors assessed the US-Iran peace deal, though uncertainty over the full resumption of shipping through the Strait of Hormuz limited further falls.

Brent crude futures dipped 16 cents, or 0.2%, to $78.80 a barrel by 0340 GMT, while US West Texas Intermediate fell 25 cents, or 0.3%, to $75.80 a barrel.

Both benchmarks fell about 5% for a second straight session on Tuesday to stand at three-month lows, on hopes that a US-Iran deal would allow oil flows through the Strait.

"Markets are broadly stripping out ‌the embedded geopolitical risk ‌premium in oil prices," said Priyanka Sachdeva, senior market analyst at ‌Phillip ⁠Nova.

"That said, the ⁠path toward normalization remains far from straightforward. While political agreements may be progressing, physical tanker traffic through the Strait has yet to fully recover."

The deal would provide for the United States to lift its blockade of Iran's ports, while Tehran would allow oil tanker traffic through the Strait, effectively blocked since US and Israel strikes on February 28.

"Oil markets retreated on expectations the Strait of Hormuz would reopen following the peace agreement, but traders held off further ⁠selling pending details," said Hiroyuki Kikukawa, chief strategist of Nissan ‌Securities Investment.

WTI is likely to stay volatile in ‌a range of $10 above or below $80 a barrel, he added.

Before the closure, about a fifth of ‌global crude oil and liquefied natural gas supplies flowed through the Strait.

Details of ‌the interim peace deal began to emerge on Tuesday, with President Donald Trump saying it would rule out a nuclear weapon for Tehran and a US official saying it would allow Iran to sell oil upon signing.

The memorandum of understanding, not yet public, extends by another 60 days a ‌tenuous ceasefire agreed in April, so as to allow room for talks toward a permanent truce.

Still, industry officials say a ⁠full return to ⁠pre-war production and refining levels is likely to take weeks, months or even years.

Israel has distanced itself from both the April ceasefire and the latest US-Iran pact, fueling uncertainty about whether it will hold.

Israeli drone strikes targeted three vehicles in southern Lebanon on Tuesday, killing at least four and wounding others, Lebanon's National News Agency said, prompting a rare public rebuke from Trump.

China's crude oil throughput fell 9.1% in May on the year to its lowest in almost four years, data showed, also signaling that refiners were starting to draw on stockpiles amid the Iran war.

The American Petroleum Institute report showed US crude stocks fell 8.3 million barrels in the week ended June 12, the sources said.

It exceeded expectations for a draw of 4.6 million barrels, with official numbers due from the Energy Information Administration at 10:30 a.m. ET (1430 GMT) on Wednesday.

Business

Energy Sector Clears ‘Hormuz’ After US-Iran Deal, Risk Premium in Focus

Ships wait to transit the Strait of Hormuz on June 15. REUTERS
Ships wait to transit the Strait of Hormuz on June 15. REUTERS
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Energy Sector Clears ‘Hormuz’ After US-Iran Deal, Risk Premium in Focus

Ships wait to transit the Strait of Hormuz on June 15. REUTERS
Ships wait to transit the Strait of Hormuz on June 15. REUTERS

The energy sector and the global economy have avoided the worst-case scenario: oil at $150 a barrel.

That was the level many financial institutions and international companies had used in shaping their investment assumptions. International officials and governments also expected it and aligned with those forecasts.

For the global economy, $150 oil would have meant an energy sector slipping out of control, with damaging consequences for other industries. That did not happen. Brent crude is now trading at about $80 a barrel, roughly $70 below that feared level and above its pre-war price of $70.

With shipping through the Strait of Hormuz resuming after a preliminary peace agreement reached by the United States and Iran, expected to take effect next Friday, energy is again moving to the center of the global economic picture. For years, the sector has supported global growth, development and market stability, helping shield international markets from sudden shocks.

What comes after the agreement?

Since the preliminary US-Iran agreement was announced, oil prices have fallen by nearly $20 a barrel. That is a major cost relief for countries that import crude, and one that is likely to feed through to many other goods, given oil’s role as a basic input in finished products.

Stock markets rose in parallel, lifted by optimism over the reopening of the Strait of Hormuz and the return of shipping to normal. The prospect of commodity prices easing back toward pre-war levels could support corporate earnings and the wider global economy.

But Mamdouh Salameh, an international energy expert, said prices would not return to pre-war levels so easily.

“The current situation indicates that Iran controls 20% of global oil and gas supplies as a result of its closure of the Strait of Hormuz. Therefore, oil prices after the agreement must take into account a permanent price premium because of Iran’s control of the Strait of Hormuz,” Salameh told Asharq Al-Awsat.

Speaking from London, Salameh said that even after the strait reopens, “the volume of oil flowing through it will fall to half its pre-war level because of the damage sustained by oil production facilities in the Arabian Gulf.”

He expected repairs to some facilities to take about eight to 12 months. “For this reason, Brent crude will not return to its pre-war level of $60 to $65 a barrel, but will range between $85 and $90 for many years to come,” he said.

Spot premiums for crude oil and some refined products in Asian markets fell on Tuesday, settling at pre-war levels after the announcement of the preliminary agreement between Washington and Tehran. Still, caution over the timeline for restoring normal navigation has so far placed a floor under energy prices, preventing a sharper decline.

Supply and demand

Saudi Aramco President Amin Nasser estimated that the oil market loses about 100 million additional barrels for every week the Strait of Hormuz remains closed, after the crisis had already removed about 1 billion barrels from supply.

Nasser said in remarks in mid-May that the gap was being covered through withdrawals from strategic and commercial inventories.

About 20% of global oil supplies pass through the Strait of Hormuz. Its closure has tested the depth of strategic inventories worldwide and posed a major challenge to the global energy sector. That was clear in moves by the International Energy Agency and its members to draw from strategic reserves.

Estimates of global demand growth this year range from 700,000 to 900,000 barrels per day. That suggests demand will remain strong long after Hormuz reopens, driven by daily oil needs for power generation and normal consumption, as well as the need to rebuild inventories.

Asia is the most exposed. The US Energy Information Administration estimates that 84% of the crude oil and condensates that passed through Hormuz in 2024 went to Asian markets, led by China, India, Japan and South Korea.

Against this backdrop, Aramco, the Saudi oil giant, said its maximum production capacity remains intact and that the company can, if requested by the government and within allocated quotas, return to maximum sustained capacity in less than three weeks.

QatarEnergy, among the hardest hit, said it expects to raise natural gas production to about 50% of capacity one month after safe passage through the Strait of Hormuz is restored.

The world is now waiting for the terms of the preliminary agreement between the United States and Iran to be disclosed, so implementation can begin. Only then can a timeline be set for ships to reach “zero waiting,” followed by the return of Gulf production capacity.

Haitham El-Gendy, an international markets expert, said, “The matter depends on how quickly navigation through the Strait of Hormuz returns to pre-war levels, and how quickly supplies from the Gulf region resume. Both issues depend primarily on hostilities not resuming during the 60-day negotiation period.”

“If we assume that things will proceed well, a return to normal will require weeks, given the scale of tanker congestion around the strait and the need to remove mines,” El-Gendy told Asharq Al-Awsat. “As for Gulf supplies, this will also require varying periods depending on the extent of the damage to each country’s energy facilities.”

According to Wood Mackenzie, halted crude production fields in the region will return to 70% of their previous output within three months and about 90% within six months. For liquefied natural gas, of which Qatar produces one-fifth of global supply, a return to full production capacity will take several months and could stretch into years after damage to the Ras Laffan facility.

On crude prices, El-Gendy said that if tensions do not flare again, oil could move in the $80-a-barrel range, with room to rise, as countries replenish inventories and strategic reserves depleted in recent months and Chinese demand recovers to pre-war levels.