Latest News

Oil prices rise after Trump's Hormuz levies threat

U.S. Stock Futures traded in choppy trade on Tuesday, after President Donald Trump announced that the U.S. was reinstating its ban on Iranian shipping. Investors also 'picked through' the earnings reports from Wall Street’s largest banks.

The U.S. Military carried out strikes against Iran overnight. President Donald Trump reinstated the blockade of Iranian ships and proposed charging a fee of 20% to guard Strait of Hormuz.

S&P futures were 0.1% lower during early European trading, while Nasdaq's futures remained 0.5% higher.

Brent crude futures rose around $2.80 to $86.19 per barrel, the highest since mid-June. U.S. Crude Futures rose $1.60 to $79.78.

Investors were spooked by the escalating tensions between the U.S. and Iran. They analyzed quarterly earnings of companies like oil giant BP or telecom equipment maker Ericsson in order to assess how this conflict will affect corporate health.

Travel and leisure, which fell 2% last year, was the main drag on the pan-European STOXX 600.

After a volatile Asian trading session, MSCI's broadest world share index slipped into the red as European trading began.

The markets were also shaken by the hawkish remarks made on Monday by Federal Reserve Governor Christopher Waller. He said that the U.S. Central Bank may have to increase interest rates in the "near term" if inflation continues well above the 2% target.

Bruno Schneller is the managing partner of Erlen Capital Management in Zurich. He said that the markets enter Tuesday at a critical 'inflection point' as investors weigh three competing factors: renewed geopolitical tensions, the beginning of the second quarter earnings season and the June U.S. Inflation data.

He added that "these events will likely determine whether or not the recent rally becomes more selective."

The U.S. CPI is scheduled to be released on Tuesday. Following that, Fed Chair Kevin Warsh will make comments and deliver the semi-annual report of monetary policy from the central bank to Congress.

This data will help to shape expectations for the next Fed meeting, which takes place on July 28-29. The markets currently expect a rate hike of 25 basis points to be around 40%.

The rate-sensitive U.S. 2 year Treasury yield last stood at 4.26%. It was its highest level since February 2025 and it rose?2 basis point on the day.

The yield on U.S. Treasury 10-year bonds was up by 2 basis points to 4.61%.

Chinese shares surged earlier in trading after export and import data released on Tuesday exceeded economists' expectations. They closed 2.15 percent higher.

South Korean stocks rose by 0.7%. Taiwanese stocks fell by 1.42%.

In a recent research note, ING analysts wrote that "China's imports and exports?surged up to their highest levels since 2021 when the pandemic-skewed data was available." The tech boom is supporting growth on both sides.

Stocks on Wall Street have been falling overnight. The S&P 500 ended 0.8% lower, and the Nasdaq Composite dropped 1.6%.

The U.S. Dollar Index, which measures greenback strength against a basket of currencies, slipped 0.2% lower to 101.09 and traded around its highest levels in the last month. Gold rose 0.7% to $4,029.27.

The Nikkei closed 0.7% higher in Tokyo after Finance Minister Satsukikatayama stated that Japan could consider changing the strategy of its Government Pension Investment Fund, if the investment climate changed dramatically, without providing further details.

Bitcoin rose 0.8% to $62,782.48. (Reporting and editing by Kevin Buckland in London, Stephen Coates in Singapore, William Maclean; Editing by Nell Mackenzie, Gregor Stuart Hunter, William Maclean.

(source: Reuters)