Daily Fundamental Analysis: Oil Prices Jump as Tension Between The US And Iran Grows

Oil futures rose over 4% Wednesday amid U.S.-Iran tensions, as Trump doubted prospects for a nuclear deal. Brent crude rose 4.3% to $69.79, while U.S. West Texas Intermediate gained 4.9% to $68.18.

The U.S. is evacuating non-essential embassy staff from Baghdad. The United Kingdom also warned of possible military escalation in the region. Iran’s defense minister countered through state media, warning that U.S. regional bases were within striking distance.

US Markets closed lower Wednesday, with the S&P 500 and Nasdaq down 0.3% and 0.5% respectively, while the Dow was flat. The S&P 500 remains about 2% below its February record.

Oracle shares jumped 7% after hours on strong earnings and projected 70% cloud growth for fiscal 2026.

May’s inflation data came in below expectations, with CPI rising 0.1% versus the forecast 0.2%. Core CPI also increased less than predicted.

May’s producer price index report is due today, with economists expecting a 0.2% increase and 0.3% core rise.

Asian markets were mixed following Trump’s China trade deal announcement. Under the deal, Chinese imports face 55% tariffs, confirmed by Commerce Secretary Lutnick.

Major Asian indices showed varied performance: Japan’s Nikkei 225 fell 0.58%, South Korea’s Kospi rose 0.83%, and Hong Kong’s Hang Seng index dropped 0.51%. Australia’s S&P/ASX 200 and China’s CSI 300 remained flat

Japanese manufacturers’ sentiment fell in Q2, according to a government survey, amid growing trade uncertainties. The manufacturers’ confidence index dropped to -4.8 from -2.4, while the overall business confidence fell to -1.9, both reaching their lowest points in over a year.

And in the Forex market, The U.S. dollar index fell 0.32% to 98.287, reaching its lowest since April. EURUSD is up 130 points so far this week and the pair is not showing signs of slowing down as it nears its yearly high.