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Oil Jumps, Stocks Fall as US-Iran Clashes Spark Peace Talks Fears

An oil rig operates in the Permian Basin oil field in Texas, USA (Reuters)
An oil rig operates in the Permian Basin oil field in Texas, USA (Reuters)
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Oil Jumps, Stocks Fall as US-Iran Clashes Spark Peace Talks Fears

An oil rig operates in the Permian Basin oil field in Texas, USA (Reuters)
An oil rig operates in the Permian Basin oil field in Texas, USA (Reuters)

Stocks sank and oil prices jumped Friday as US-Iran clashes in the Strait of Hormuz jolted hopes for a deal to end the war and reopen the crucial waterway.

Markets across the world have enjoyed a strong run this week on growing optimism that the 10-week conflict -- which has sent oil prices soaring -- will be concluded soon.

However, the risk-on mood was tempered Thursday following news that US forces had carried out strikes on Iranian military targets in response to an attack on three American destroyers in the Strait, threatening a month-old ceasefire.

For its part, Iran's central military command accused the United States of violating the ceasefire by attacking an oil tanker and another ship.

Following the clashes, Donald Trump wrote on his Truth Social platform: "We'll knock them out a lot harder, and a lot more violently, in the future, if they don't get their Deal signed, FAST!"

But when asked in Washington if the truce was still on, the US president said: "Yeah it is. They trifled with us today. We blew them away."

The clash came a day after Trump said an agreement could be near and as Tehran considered a one-page US proposal to end the conflict and reopen the Strait, through which a fifth of world oil and gas usually passes.

Also, the Wall Street Journal said the White House was considering restarting an operation to help commercial ships through the Strait, which Trump dropped after just a day earlier this week.

"Project Freedom" had caused anger in Iran and led it to carry out attacks on the United Arab Emirates.

Oil prices, which fell around 10 percent over the past three days, rose more than one percent Friday.

And equity markets retreated at the end of a week that saw a strong rally across Asia, helped by a surge in tech firms linked to artificial intelligence.

Seoul was off more than one percent after hitting multiple records this week, while Tokyo, Hong Kong, Sydney, Shanghai, Singapore, Wellington, Taipei, Manila and Jakarta were also down.

The losses followed a retreat on Wall Street, where the S&P 500 and Nasdaq came down from all-time highs, though analysts pointed out that losses were not surprising after the recent run-up.

"Once again, the news flow on the geopolitical front has shown that the path towards a lasting agreement is anything but linear," said Chris Weston at Pepperstone.

He added that "traders have had to rethink the assumptions on the trajectory of the conflict and the normalization of vessel flows through Hormuz that had been made over the last couple of sessions".

Sterling weakened against the dollar as investors kept a check on local elections in the United Kingdom, where the ruling Labour Party is expected to suffer hefty losses that could amplify calls for Prime Minister Keir Starmer to resign or face a leadership challenge.

Meanwhile, Japanese media reported that authorities had spent around $64 billion since last week propping up the yen.

The market interventions reportedly began on April 30 when the currency weakened to near 160 per dollar, the lowest in almost two years.

Since then there have been several spikes in the value of the yen, sparking speculation of further moves by the government. On Friday it was trading close to 157.

Atsushi Mimura, Japan's top currency official, on Thursday declined to comment, local media reported.

Investors are also awaiting the release of US jobs data due later in the day, hoping for an idea about the impact of the war and rising prices on the economy.

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Business

Gold Drops Below Key $4,000 Level as Dollar Firms, Rate Hike Bets Rise

FILED - 16 March 2023, Bavaria, Munich: FILE PHOTO - Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: FILE PHOTO - Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
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Gold Drops Below Key $4,000 Level as Dollar Firms, Rate Hike Bets Rise

FILED - 16 March 2023, Bavaria, Munich: FILE PHOTO - Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: FILE PHOTO - Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa

Gold prices fell more than 3% and traded below a key psychological level of $4,000 per ounce, under pressure from a firmer US dollar and growing expectations of interest rate hikes.

Spot gold fell 3.4% to $3,968.41 an ounce as of 1312 GMT, after hitting its lowest level since November 2025.

US gold futures declined nearly 4% to $3,984.40.

The US dollar firmed, making dollar-priced bullion more expensive for holders of other currencies.

Traders have ramped up bets on US interest rate hikes this year after the US central bank struck a hawkish tone at its latest policy meeting and as fears of inflationary pressures stemming from the Iran war persist.

"The market pricing a rate hike as soon as September due to a hawkish Fed, a surging dollar at 13-month highs combined with lower inflation expectations are putting heavy pressure on precious metals," Tai Wong, an independent metals trader, said.

"For gold, there is support just under $3,900 and central bank purchases continue, so a collapse is unlikely, but expect a potentially long period of consolidation as the gold trade is now out of favor," he added.

Gold becomes less attractive to investors when interest rates rise because it offers no yield.

Spot gold, which scaled a record peak of $5,594.82 in late January, has since shed over $1,600 an ounce.

ING analysts cut their gold forecasts, now expecting prices to average $4,300 an ounce in the third quarter of 2026 and $4,600 in the fourth, compared with their previous projections of $4,850 and $5,000, respectively, according to Reuters.

Investors are also awaiting US Personal Consumption Expenditures data, the Fed's preferred inflation measure, due on Thursday for further signals on the monetary policy outlook.

More hawkish signals from Fed officials or economic data that supports the argument for higher rates may translate to further downside risk for gold, said Lukman Otunuga, senior research analyst at FXTM.

Among other metals, spot silver fell 6% to $58.28 per ounce after hitting its lowest level since December 2025.

Platinum lost 4.3% to $1,580.76, and palladium dropped 4.9% to $1,177.50.

 

 

 

Business

Oil Extends Slide to More than 1% on Expectations of Smoother Crude Flows via Hormuz

Storage tanks for crude oil, gasoline, diesel, and other refined petroleum products in Carson, California (Reuters)
Storage tanks for crude oil, gasoline, diesel, and other refined petroleum products in Carson, California (Reuters)
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Oil Extends Slide to More than 1% on Expectations of Smoother Crude Flows via Hormuz

Storage tanks for crude oil, gasoline, diesel, and other refined petroleum products in Carson, California (Reuters)
Storage tanks for crude oil, gasoline, diesel, and other refined petroleum products in Carson, California (Reuters)

Oil prices fell more than 1% on Wednesday, extending this week's losses to hit fresh four-month lows on signs that more oil tankers are set to move out of the Strait of Hormuz.

Brent crude futures were down $1.37, or 1.8%, at $75.71 a barrel by 0805 GMT. US West Texas Intermediate slipped by $1.08, or 1.5%, to $72.13.

Brent touched a low of $75.60, its weakest level since February 27, the day before the initial US-Israeli strikes on Iran. WTI fell as low as $72.03, the weakest since March 3.

"While there are early encouraging signs of increased tanker activity, the market is pricing in the broader scenario of Iranian oil re-entering the global market and the Strait of Hormuz normalising," said Tim Waterer, chief market analyst at KCM Trade.

"If sanctions are eased, Iranian production and exports could ramp up relatively quickly given the substantial amount stored on tankers — we are likely talking weeks rather than months," Waterer added, Reuters reported.

Prices have also come under pressure this week from the 60-day sanctions waiver Washington granted Tehran after initial peace talks, allowing Iran to sell oil, and from an easing of hostilities in Lebanon, with prices approaching pre-war levels.

Ship-tracking data showed that three stranded supertankers passed through the strait on Tuesday. The UN shipping agency said an evacuation plan is under way to enable hundreds of stranded ships to sail through the strait after the US-Iran ceasefire deal.

On Tuesday, Oman and Iran agreed to press on with discussions about managing navigation in the strait. US Secretary of State Marco Rubio said that any attempt by Iran to levy transit fees would violate international law.

Uncertainty remains over the durability of the accord, however. US President Donald Trump said on Tuesday that Iran had agreed to nuclear inspections into "infinity", though Tehran said it had made no such concession.

"Markets are currently assigning too much confidence to a favorable outcome without fully discounting the risks associated with unresolved nuclear issues and inspection disputes," said Mark Malek, CIO at Siebert Financial.

Investors are also watching how quickly Middle Eastern producers can restore exports and whether more ships will enter the region.

Meanwhile, US crude stocks fell by 765,000 barrels in the week to June 19, market sources said, citing data from the American Petroleum Institute.

Nine analysts polled by Reuters estimated, on average, that crude inventories fell by about 4.5 million barrels in the past week.

Business

Saudi Real Estate Sector Prepares for a New Wave of Foreign Investment

Saudi Arabia's capital, Riyadh (Digital Government Authority)
Saudi Arabia's capital, Riyadh (Digital Government Authority)
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Saudi Real Estate Sector Prepares for a New Wave of Foreign Investment

Saudi Arabia's capital, Riyadh (Digital Government Authority)
Saudi Arabia's capital, Riyadh (Digital Government Authority)

Saudi Arabia’s real estate market is preparing to enter a new investment phase following the approval of the executive regulations governing property ownership by non-Saudis, a move that strengthens the sector’s appeal to foreign capital and opens the door to broader opportunities across residential, commercial, and hospitality projects.

The sector is expected to benefit from a wider investor base, positioning real estate as one of the key drivers of growth within the Kingdom’s expanding economy.

During its session on Tuesday, the Council of Ministers, chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, approved the executive regulations for non-Saudi property ownership and endorsed the geographical zones in which non-Saudis will be permitted to own real estate.

Minister of Municipalities and Housing Majed Al-Hogail said the Cabinet’s approval of the executive regulations and designated ownership zones marks an important step toward launching a new phase for the Saudi real estate market.

The sector is entering a new stage as the impact of the non-Saudi property ownership framework begins to take shape in market activity. Specialists expect the influx of new investments to encourage developers to expand supply and improve the quality of real estate products.

Experts believe the next phase will not be limited to growing demand. It is also expected to intensify competition among projects, enhancing market efficiency and contributing to a stronger balance between supply, demand, and prices.

Stimulating the Market

Khaled Al-Jasser, a real estate specialist and chairman of Amaken International Group, told Asharq Al-Awsat that the move represents a significant boost for the Kingdom’s real estate ecosystem, strengthening investment activity and stimulating market momentum by broadening participation and expanding available opportunities.

According to Al-Jasser, the measure is also expected to increase real estate supply, enhance competitiveness, improve market efficiency, and provide beneficiaries with a wider range of options and more balanced pricing.

The chairman of Amaken International Group added that the initiative enhances the attractiveness of the Saudi real estate market to foreign investors, particularly in light of the Kingdom’s evolving legislative environment and ongoing reforms. These factors support the inflow of foreign capital and reinforce the real estate sector’s position as one of the most promising sectors under the objectives of Vision 2030.

Attracting Capital

For his part, economic analyst Ahmed Al-Shahri told Asharq Al-Awsat that the approval of the executive regulations for non-Saudi property ownership marks a turning point for the market because it addresses a critical issue: transforming real estate from a locally traded asset into a more open investment sector capable of attracting capital.

The significance of the move lies not only in allowing ownership but also in creating a more competitive market capable of attracting developers and investors seeking long-term opportunities in a Saudi economy currently undergoing rapid expansion.

Al-Shahri expects the impact to be reflected in stronger demand for high-quality real estate products, increased appeal of residential, commercial, and hospitality projects, and greater incentives for developers to bring additional supply to market in order to meet the needs of new categories of investors and residents in the Kingdom.

“This means the most significant impact may be seen in the expansion of the market’s overall size, rather than solely in higher prices,” he said.

Price Balance

He continued: “As for prices, the initial phase may support values in the most attractive locations due to the entry of new demand. However, over the medium term, increased supply and stronger competition among developers will serve as an important balancing factor, because a healthy real estate sector is not built on continuous price increases but on the market’s ability to maintain equilibrium between supply and demand.”

Al-Shahri explained that the move could shift the sector from a phase of “product scarcity and rising value” to one defined by “product quality and market competitiveness.” Projects distinguished by location, services, and design will become best positioned to attract investment, while lower-quality developments may face greater pressure to preserve their value.

The non-Saudi property ownership law entered into force on January 22, 2026. The framework consists of 15 articles governing property ownership procedures for foreign individuals, companies, and non-profit entities.