TOKYO (AP) — Global shares mostly rose Tuesday, after U.S. President Donald Trump said Israel and Hezbollah had agreed to dial back fighting.
France's CAC 40 jumped nearly 1.0% in early trading to 8,223.71, while the German DAX gained 1.1% to 25,275.57. Britain's FTSE 100 added 0.3% to 10,372.39.
U.S. shares were set to drift lower with Dow futures down 0.3% at 51,004.00. S&P 500 futures dipped 0.1% to 7,605.75.
In Asia, Japan's benchmark Nikkei 225
slipped 0.3% to finish at 66,734.24. South Korea's Kospi inched up 0.2% to 8,801.49.
The Hang Seng gained 2.5% to 26,038.32, while the Shanghai Composite rose 0.4% to 4,075.10.
Australia’s S&P/ASX 200 shed less than 0.1% to 8,724.40.
In energy trading, benchmark U.S. crude lost $1.25 to $90.91 a barrel. Brent crude, the international standard, slipped $1.49 to $93.49 a barrel. The levels are still well above the roughly $70 level they were at before the war.
Much hinges on whether the United States and Iran will reach an agreement to reopen the Strait of Hormuz, allowing deliveries of oil to resume from the Persian Gulf and easing the upward pressure on inflation.
Japan imports almost all its oil, although the effects on prices of gas and other products have been relatively contained by the release of the nation's reserves so far.
“Crude shortages have already forced refiners across Asia and Europe to aggressively reduce runs,” said analyst Stephen Innes. “The result is that the squeeze is no longer confined to crude inventories. It is spreading into the fuels that actually power economies: gasoline, diesel, jet fuel, LPG, and naphtha.”
On Monday, the United States said it bombed Iranian radar and drone sites after Tehran downed an American drone. Iran said it targeted U.S. soldiers in Kuwait with missiles that the U.S. said it shot down.
Trump said the Israel and Hezbollah comments came after he spoke with Israeli Prime Minister Benjamin Netanyahu and communicated with the Lebanon-militant group through mediators.
In currency trading, the U.S. dollar rose to 159.73 Japanese yen from 159.66 yen. The euro cost $1.1648, up from $1.1631.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
