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.



China, US Discuss Tariffs, Farm Trade at First Trade Council Meeting

US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
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China, US Discuss Tariffs, Farm Trade at First Trade Council Meeting

US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)

China and the United States held their first trade council meeting under a bilateral economic and trade consultation mechanism via ‌video link ‌on Friday, China's ‌commerce ⁠ministry said on ⁠Saturday.

The two sides held "candid, in-depth and constructive discussions" on implementing outcomes ⁠from previous trade consultations, ‌including ‌tariffs, a reciprocal ‌tariff-reduction arrangement involving $30 ‌billion on each side, agricultural trade and other issues of ‌note, the ministry said.

Both sides will ⁠continue ⁠to use the council to address trade concerns, expand cooperation and reduce outstanding issues, it added.


IMF Says More Work Needed on Lebanon Reforms

A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
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IMF Says More Work Needed on Lebanon Reforms

A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)

The International Monetary Fund said on Friday that more work was needed to reach an agreement on restructuring Lebanon's banking sector, one of the steps towards unlocking billions of dollars in financial assistance.

An IMF staff-level agreement reached in April 2022 laid out conditions to unlock assistance, including a law on the distribution of losses in the banking sector, known as the financial gap law, which parliament has still not voted on.

In a statement at the end of meetings that began on Tuesday, the IMF said "there was progress in further clarifying the approaches under consideration by the Banque du Liban (BdL) and the Government regarding banking sector reform, the draft financial regulation law and the recovery of deposits, and aligning them with international standards".

It however noted that "further work is needed to reach an agreement on a strategy for an effective and durable restructuring of Lebanon's banking sector, leading to a sound and resilient system".

The cabinet submitted a draft of the law to parliament in 2025, but the text is contested by the banking sector and political parties, preventing a vote.

Differences over estimates of losses and their distribution have stalled negotiations with the IMF.

In 2022, the government estimated losses resulting from the 2019 financial crisis at around $70 billion, a figure believed to have increased over the last seven years during which the crisis has remained unresolved.

Lebanese Finance Minister Yassin Jaber said during a news conference that he hoped to "achieve progress that would allow us to reach an agreement on a program with the IMF and sign it during the first quarter of next year, and by its end at the latest".

Lebanon's economic crisis, which the World Bank has ranked among the worst since 1850, has deprived depositors of access to all of their funds, destroyed confidence in the banking sector and led to greater reliance on cash liquidity in various economic and commercial activities.


Silver Demand Seen Down 5% This Year Due to Weaker Jewellery Purchases

Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
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Silver Demand Seen Down 5% This Year Due to Weaker Jewellery Purchases

Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)

Silver demand is expected to fall by 5% in 2026 due to weaker jewellery demand and lower consumption in solar cells, where high prices have accelerated substitution, research showed on Friday.

Research done by consultancy Metals Focus for the Silver Institute puts demand at 1.08 billion troy ounces this year.

Silver, used in jewellery, electronics, electric vehicles and solar panels as well as for investment, is ‌down 59% ‌to $50 an ounce since retail buying drove prices ‌to ⁠a record high ⁠of $121.6 in January.

The base for that rally was created in 2025, when silver surged 147%, as massive inflows of the metal to US inventories due to tariff uncertainty and into silver-backed exchange-traded products (ETPs) tightened liquidity in the London market.

This year, expectations for higher interest rates, a stronger dollar and higher bond yields have weighed on investment ⁠sentiment.

Silver released through ETP selling, outflows from stocks ‌in the US and a smaller ‌market deficit improved liquidity in the physical market, the Silver Institute and ‌consultancy Metals Focus said on Friday.

Metals Focus sees net ETP ‌outflows of 45 million ounces this year after 278 million ounces of inflows in 2025.

As of early November, ETP holdings stood at 1.25 billion ounces.

Industrial demand is expected to fall by 3% in 2026 as installations ‌in photovoltaics have fallen short of expectations, particularly in China, while January's record silver prices accelerated ⁠substitution.

Meanwhile, demand ⁠for jewellery and silverware is forecast to decline by 22% and 17%, respectively, as higher prices and weaker rural spending in India encouraged purchases of smaller, lighter products.

Demand in China and the US is also subdued. Strong retail investment in late 2025 and early 2026 gave way to far more subdued buying from March as silver prices fell, Metals Focus said.

It expects global bar and coin demand to fall 2% this year, with US retail investment hitting its lowest level since 2010.