Oil prices rise after EU agrees Russian sanctions
Investing.com - Shares in European energy and defense stocks fell on Tuesday following U.S. President Donald Trump’s announcement of a ceasefire between Israel and Iran.
In early trading, oil majors TotalEnergies (EPA:TTEF), Shell (AS:SHEL), and BP (LON:BP) all slipped, along with defense names like Leonardo (BIT:LDOF), Rheinmetall (ETR:RHMG), and BAE Systems (LON:BAES).
Broader European stock markets, however, were higher. The pan-European Stoxx 600 was last trading up by 1.19%, while the DAX in Germany added 1.8%, the CAC 40 in France rose by 1.2% and the FTSE 100 in the U.K. gained 0.3%.
Trump has declared that the ceasefire between Israel and Iran is now "in effect," adding that neither side should violate it.
The statement has lifted expectations that the 12-day bout of fighting that included deadly air strikes has now come to an end. Oil prices slumped in the wake of the announcement, while gold and the U.S. dollar dipped amid a fading in safe-haven demand.
Trump’s comments suggested that the ceasefire would take place in stages, with operations already underway being allowed to finish. An Iranian missile attack on Israel on Tuesday killed four people, according to Reuters, citing Israel’s ambulance service. Meanwhile, Tehran said an Israeli strike on northern Iran had killed nine people.
Still, questions surrounded the longevity of the ceasefire. Israel, who was joined by the U.S. in its bid to erase Iran’s nuclear and ballistic missile ambitions, said it had agreed to a halt in the violence, with Prime Minister Benjamin Netanyahu noting that the operation had achieved its objectives.
Iranian Foreign Minister Abbas Araqchi also said it had no intention of continuing its retaliatory strikes moving forward, but stood ready to respond to any further aggression from Israel -- a sentiment that Netanyahu reciprocated.