Oil Prices Stabilize After Sharp Spike

Oil prices steadied on Wednesday following a significant surge, driven by fears of escalating US involvement in the Israel-Iran conflict. This came after President Donald Trump's aggressive statements demanding Iran's unconditional surrender.

Geopolitical Tensions Rise

As missile exchanges between Iran and Israel continued, Trump left the G7 Summit early, emphasizing his desire for a definitive end to hostilities. His warnings on Truth Social about Iran's Supreme Leader further fueled market anxieties.

Market Reactions and Analyst Warnings

Analysts caution that any strike on Iranian nuclear sites could disrupt crude supplies through the Strait of Hormuz, affecting global oil transport. Asian equities showed mixed reactions, with some markets posting losses amid the uncertainty.

Federal Reserve's Potential Response

Weak US economic data has led to speculation about possible interest rate cuts by the Federal Reserve, adding another layer of complexity to the current geopolitical and economic landscape.