![\"Crude](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/06\/66a0bac0aefedeb760787407c48b2619.jpeg\")
Crude prices have tumbled on news of a deal to reopen the Strait of Hormuz (-) \u00b7 -\/AFP\/AFP <\/p>\n Crude prices have tumbled on news of a deal to reopen the Strait of Hormuz (-) \u00b7 -\/AFP\/AFP <\/p>\n
Oil prices dropped further on Thursday after US President Donald Trump and his Iranian counterpart signed off on a deal to end four months of war and reopen the Strait of Hormuz to tanker and cargo traffic.<\/p>\n
Wall Street was cautiously in the green around a half hour into trading, with the Dow, the broader-based S&P 500 and the tech-heavy Nasdaq up just above 0.5 percent.<\/p>\n
That followed steep falls the previous session after the US Federal Reserve raised its inflation forecast and projected higher US interest rates this year, boosting the dollar.<\/p>\n
“Politics and economics are front and centre for markets,” said Russ Mould, investment director at AJ Bell.<\/p>\n
“The US and Iran have signed an initial deal to end the war, causing oil prices to fall further,” he said.<\/p>\n
But the Fed’s hint at a rate increase “took the market by surprise and caused a wobble” on Wall Street and elsewhere, he added.<\/p>\n
Kevin Warsh, the new Fed chief, has vowed to “deliver price stability” after chairing his first policy meeting, even though Trump has repeatedly called for lower rates.<\/p>\n
“Persistently high prices are a burden for the American people,” he said after the meeting, which followed an interest rate hike by the European Central Bank last week.<\/p>\n
“The thought of a hawkish Fed policy and higher interest rates weighs heavily on risk appetite,” said Ipek Ozkardeskaya, senior analyst at Swissquote.<\/p>\n
For Fawad Razaqzada, market analyst with Forex.com, “the Fed is basically signalling a readiness to respond should inflationary pressures re-emerge”.<\/p>\n
He added: “Should lower energy costs continue to filter through to inflation data, policy makers may ultimately find sufficient justification to keep rates unchanged for an extended period rather than resume tightening.”<\/p>\n
Crude futures slid around two percent on Thursday after a deal aimed at ending the US-Israeli conflict with Iran that restricted shipping in the Strait of Hormuz, causing a spike in energy prices.<\/p>\n
But “the latest ECB and Fed decisions showed that policy makers do not necessarily rely on the idea that lower oil prices will immediately cool inflationary pressures”, Ozkardeskaya said.<\/p>\n
European markets failed to find momentum.<\/p>\n
London’s benchmark FTSE 100 index was down nearly one percent mid-afternoon, with the Bank of England widely expected to keep its main interest rate on hold despite elevated inflation.<\/p>\n
Frankfurt and Paris were essentially flat two hours out from the close.<\/p>\n
Earlier in Asian trading, Seoul surged more than two percent and ploughed past 9,000 points for the first time thanks to a fresh surge in chip titans Samsung and SK Hynix as the AI boom continues apace.<\/p>\n
Tokyo, meanwhile, finished above 71,000 points for the first time.<\/p>\n
– Key figures around 1345 GMT –<\/p>\n
\u00a0<\/p>\n
Brent North Sea Crude: DOWN 1.5\u00a0percent at $78.02 a barrel<\/p>\n
West Texas Intermediate: DOWN 2.2 percent at $74.56 a barrel<\/p>\n
New York – Dow: UP 0.6\u00a0percent at 51,776.00 points<\/p>\n
New York – S&P 500: UP 0.7 percent at 7,470.20<\/p>\n
New York – Nasdaq: UP 0.7\u00a0percent at 26,197.14<\/p>\n
London – FTSE 100: DOWN 1.0 percent at 10,397.30 points<\/p>\n
Paris – CAC 40: UP 0.1 percent at 8,438.27<\/p>\n
Frankfurt – DAX: FLAT at 24,933.76<\/p>\n
Tokyo – Nikkei 225: UP 1.7 percent at 71,053.49 (close)<\/p>\n
Hong Kong – Hang Seng Index: DOWN 1.6 percent at 23,924.81 (close)<\/p>\n
Shanghai – Composite: DOWN 0.4 percent at 4,090.48 (close)<\/p>\n
New York – Dow: DOWN 1.0\u00a0percent at 51,492.55 (close)<\/p>\n
Euro\/dollar: DOWN\u00a0at $1.1475 from $1.1494 on Wednesday<\/p>\n
Pound\/dollar: DOWN at $1.3243 from $1.3282<\/p>\n
Dollar\/yen: UP at 160.84 yen from 160.71 yen<\/p>\n
Euro\/pound: UP\u00a0at 86.65 pence from 86.53 pence<\/p>\n
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