Oil prices fell sharply at the start of the week after the US held off from striking Iran for a second straight night, easing some immediate pressure on energy markets. Brent crude, the global benchmark, dropped 5.3% to $91.68 a barrel after briefly reaching $100 last week. The move came as Iran said it would pause retaliatory attacks against US allies in the region, while US officials stressed that military options remain available and that diplomacy is still being explored.
Investors appeared to welcome the pause, even though the situation remains unsettled. According to the report, officials in Washington are still weighing the costs and effectiveness of any further action, and the market continues to focus on possible disruption to shipping and energy flows. Traffic through the Strait of Hormuz is still heavily affected, and the conflict has also spread into the Red Sea, where Iran-backed Houthi forces reportedly targeted Saudi energy facilities over the weekend.
Stocks rise as energy shares lag
The drop in crude helped lift European equities, with the Stoxx Europe 600, the FTSE 100, the CAC 40 and the DAX all moving higher in early trading. In London, oil majors were among the weakest performers: BP fell 3.8% and Shell slipped 2%, reflecting the softer oil price. By contrast, JD Sports and Vodafone were among the stronger FTSE 100 names after positive updates.
Separately, AstraZeneca reported second-quarter profit ahead of forecasts, supported by strong demand for its cancer treatments. Earnings for the three months to June rose 18% to $2.63 a share, while revenue increased 5% to $15.38bn at constant currency. The results added a more upbeat note to a session otherwise dominated by geopolitics and the direction of energy prices.
Source: theguardian.com
