Oil slumps on hopes of Iran deal, yen spikes suddenly after intervention
Oil prices skidded on Monday as hopes of peace in the Middle East grew. Brent crude futures sank more than 6% to $82.41 after U.S. President Donald Trump said talks with Iran will happen on Monday. He had earlier called off an imminent attack on Iran to reach a deal to reopen the Strait of Hormuz and resolve the impasse over Tehran's nuclear capabilities.
The yen jumped suddenly after the U.S. and Japan confirmed joint intervention to prop up the frail currency. The Japanese yen rose more than 1% to 155.39 per U.S. dollar. Japan's finance ministry confirmed a rare bilateral action to halt the yen's slide to fresh 40-year lows. Mizuho Bank strategist Masayuki Nakajima said the objective was likely not to reverse the broader trend of dollar/yen as structural forces remain broadly yen-negative. S&P 500 futures rose 0.4% while Nasdaq futures gained 0.6%. Japan's Nikkei dipped 1% and South Korea's KOSPI slid 3.6% after a turbulent July in which it slumped 22%. MSCI's broadest index of Asia-Pacific shares outside Japan was down 1% in early trading.
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Oil prices and global stocks experienced volatility amid growing hopes for Middle East peace. This shift in geopolitical dynamics could
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