Oil prices

Published on 18/08/2026 – 12:47 GMT+2•Updated
13:04

Government borrowing costs are surging on both sides of the Atlantic.

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Long-term bond yields across Europe’s biggest economies hit multi-year highs on Tuesday, while the yield on 30-year US Treasuries rose to its highest level in nearly two decades.

The sell-off came as hopes of a swift resolution to the Iran conflict faded, pushing oil prices higher and renewing concerns about persistent inflation. International benchmark Brent crude traded at nearly $91 a barrel on Tuesday morning amid heightened tensions in the Middle East.

“The breakdown in US-Iran peace talks has increased the risk that energy prices remain elevated for the rest of the year, which could keep inflation higher than expected and increase the chance of central banks raising rates,” Richard Carter, head of fixed interest research at Quilter Cheviot, told Euronews Business.

Investors are increasingly betting on tighter monetary policy in the eurozone, with the ECB deposit rate expected to reach 2.76% by March 2027, up from 2.25% currently.

According to Trading Economics, investors see a 90% probability of a September rate hike by the European Central Bank (ECB).

At the same time, in the US, the 30-year Treasury yield reached 5.33%, a level not seen since 2007. In the UK, the 30-year gilt traded at 5.85% — its highest level since May 2026.

As government bonds came under renewed selling pressure globally, France’s 10-year bond yield rose to 4.10% on Tuesday morning, its highest level since June 2009.

Germany’s 10-year Bund yield, the benchmark for the eurozone, climbed above 3.25%, reaching its highest level since March 2011.

France’s 30-year bond yield reached its highest level since 2008, amid a global bond sell-off and growing concern about the country’s 2027 budget negotiations and next year’s presidential election. Germany’s 30-year bond yield rose to 3.78%, its highest level in 15 years.

Rising long-dated bond yields are not driven solely by expectations of higher interest rates and inflation fears.

“Investors are concerned about the scale of borrowing in major economies including the UK, France and Japan,” Carter continued, adding that “significant volumes of AI-related bond issuance have also added to supply, creating further pressure on prices and pushing yields higher.

Higher borrowing costs put pressure on economies and raise financing costs across a range of investments.

As government debt offices constantly raise money through bond markets, the effect of the jump in yields will gradually feed into their borrowing costs as they refinance maturing debt.

Italy is expected to refinance maturing debt equivalent to 17% of GDP in 2026, according to S&P Global Ratings, compared with 12% for France and 7% each for Germany and the UK.

For now, bond markets are likely to remain sensitive to developments in both geopolitics and economic data,” Carter said.

He added that bonds remain attractive to investors because yields are historically high and comfortably exceed inflation, offering a positive return after price rises are taken into account.

Published on
12/08/2026 – 16:50 GMT+2

Two of the most influential voices in energy markets set out opposing readings of the year on Wednesday.

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The IEA now expects the world to burn less oil in 2026 than it did in 2025, its first such call since Covid-19 ground the global economy to a near-halt, while OPEC still pencils in growth, leaving them more than two million barrels a day apart.

The Paris-based IEA now expects global oil demand to fall by 1.6 million barrels per day (mb/d) in 2026, a downgrade of 510,000 b/d from July.

“The ongoing closure of the Strait of Hormuz and elevated fuel prices continue to weigh on oil consumption,” it said, cutting its second-half forecast by roughly 550,000 b/d.

OPEC still expects demand to grow, though its estimate has been trimmed for a fourth consecutive month, to 580,000 b/d from 780,000 b/d.

The producer group has consistently argued the war has done less damage to consumption than Western forecasters believe, and the two sets of numbers imply a difference of about 2.2 mb/d in what the world will burn this year.

Supply still 6.3 million barrels short

The supply picture explains the pessimism.

Global production rose by 2.4 mb/d to 101.5 mb/d in July but remained 6.3 mb/d below year-earlier levels, with 8.3 mb/d of Gulf output still shut in.

Gulf production climbed to 23.9 mb/d, yet regional exports fell 2.1 mb/d to 15 mb/d after the Strait of Hormuz was effectively closed again in early July and tankers and infrastructure came under attack, with loadings sliding from 20 mb/d to around 12 mb/d.

With no deal to reopen the waterway or secure passage through Bab el-Mandeb, the IEA cut its supply forecasts again and now expects output to fall by 4.3 mb/d this year.

Observed global stocks also dropped by 69 million barrels in July to just under 7.9 billion, down 410 million since the war began.

Both bet on 2027

Where the two agree is next year.

OPEC now expects demand to grow by 2.2 mb/d in 2027, an upgrade from the 1.94 mb/d it forecast last month, while the IEA goes further still at 2.4 mb/d.

That is an inversion worth highlighting, as the gloomier forecaster for this year delivers a more bullish read for the next.

The IEA reads the damage as a blockage rather than a collapse, oil that cannot reach buyers rather than demand that has vanished, so the deeper this year’s hole, the steeper the climb out of it once Hormuz reopens.

OPEC, which never accepted that consumption fell much, has less ground to make up for.

The agency’s outlook rests explicitly on de-escalation, assuming flows gradually recover and turning this year’s supply contraction into growth of 8.3 mb/d, flipping a 1.3 mb/d deficit into a 4.6 mb/d surplus.

Published on
12/08/2026 – 8:34 GMT+2

Oil prices climbed and world stocks were mixed on Wednesday, with Asian shares mostly higher even as Wall Street slipped further from last week’s record highs, as investors awaited a crucial US inflation reading and watched for any breakthrough in the stalled Iran war talks.

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The price of a barrel of Brent crude, the international benchmark, was up 0.9% at $89.67 early on Wednesday. US benchmark crude picked up 0.9% to $83.98.

Gold edged up 0.8% to $4,400.44 an ounce, while silver gained 1% to $65.30 an ounce.

Iran has rejected a comment by US President Donald Trump suggesting that, since Tehran is seeking compensation as part of any talks to end the war, Washington would demand the same.

The United States and Israel attacked Iran in late February, a strike that led to the closure of the Strait of Hormuz and kept much of the world’s oil pent up in the Middle East. Last month alone, Brent’s price swung between $72 and $102 a barrel.

Meanwhile, an attack by Iran-backed Houthi rebels on a vessel in the Bab el-Mandeb strait, off Yemen’s southern tip, has raised concerns that the violence could reignite civil war and further threaten regional shipping routes.

Higher oil prices worsen inflation, and they have pushed the average cost of a gallon of regular petrol in the US to $4.01, according to AAA — up from less than $3.14 a year ago.

That has Wall Street’s attention fixed on Wednesday, when the US government releases its latest monthly inflation reading. Economists expect it to show inflation slipped to 3.4% in July from 3.5% in June.

On Tuesday, the S&P 500 fell 0.3% for a second modest drop since setting its all-time high on Friday. The Dow Jones Industrial Average dipped 184 points, or 0.3%, and the Nasdaq Composite sank 0.6%.

Cooler inflation could ease pressure on the Federal Reserve to raise interest rates to tamp down price increases.

Higher rates could curb inflation, but they would also drag on the wider US economy by making it more expensive for households and businesses to borrow, while undercutting prices for stocks and other investments.

Treasury yields have jumped since the war with Iran began, driven by higher oil prices and inflation worries, sending long-term US mortgage rates to their highest levels in a year.

Tokyo’s Nikkei 225 gained 0.6% to 67,334.94.

In South Korea, the Kospi jumped more than 4% to 6,597.90 on renewed buying of computer chipmakers. Samsung Electronics gained 7.7% and memory chipmaker SK Hynix rose 7.1%.

Taiwan’s Taiex advanced 0.8%.

The Shanghai Composite index added 0.3% to 3,946.51, while Hong Kong’s Hang Seng slipped 1.2% to 25,352.13.

In Australia, the S&P/ASX 200 lost 0.6% to 9,197.00.

In other early Wednesday dealings, the dollar rose to 159.41 yen from 159.30 yen. The euro slipped to $1.1535 from $1.1544.

Additional sources • AP

Published on
11/08/2026 – 13:25 GMT+2

Crude and US Treasury yields rose together as traders judged that the exchange of compensation demands between the US and Iran has pushed any potential deal further out of reach.

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The US president said on Monday he had told his negotiators to seek payment from Iran for Americans killed and wounded in attacks he attributes to Tehran going back decades, including the bombing of the USS Cole in the year 2000 and for Iranians killed in protest crackdowns.

In a follow-up post on Truth Social he expanded on the demand, saying Iran should also pay for “the damages and death caused to the people of Lebanon, Syria, Yemen, and Gaza”.

Tehran, whose representatives had sought compensation for five months of US and Israeli bombardment, says the Strait of Hormuz will stay shut until Washington lifts its naval blockade, ends sanctions and releases frozen Iranian assets.

The front month contract on Brent traded at around $89.8 a barrel on Tuesday and West Texas Intermediate at about $84.2, both up roughly 2.5%.

The US bond market read it the same way, with yields rising across the US curve in a modest global sell-off, the two-year over 4.25%, the ten-year above 4.7% and the thirty-year higher than 5.27%. The yields for all durations are trading at the highs of this year.

Since yields move inversely to prices, the rise means investors are selling government debt as they expect that costlier oil will feed into inflation and strengthen the case for higher interest rates.

Money markets now put roughly even odds on a Federal Reserve rate hike in September, with July inflation data due on Wednesday.

Control claimed, traffic missing

The current stalling of US-Iran negotiations is deliberate as US President Donald Trump appears to have been favouring a slower approach as of late.

The US president told Axios in an interview published on Sunday that the US is “low-keying it,” meaning Washington was only semi-negotiating and content to watch Iran’s inflation and empty coffers do the work, a signal he is prepared to let economic pressure mount rather than order a fresh military campaign.

In the Oval Office on Monday, he struck a triumphant note, claiming the US controls “100%” of the Strait of Hormuz, that only the US Navy holds sway in the region, that American forces have swept it clear of Iranian mines and that the blockade of Iranian ports is impenetrable.

However, shipping data tells another story.

Confirmed crossings have run at 6 to 11 vessels a day recently, against the 130 to 140 daily before the war, according to Kpler data, leaving traffic at a fraction of normal levels throughout the five-month conflict.

Published on
10/08/2026 – 7:43 GMT+2

Oil prices rose in early trading on Monday as market participants weighed mixed signals from the US and Iran, with concerns that a deal to reopen the Strait of Hormuz could take longer to materialise.

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Futures for international benchmark Brent crude for October delivery gained 1.04% to $84.42 a barrel, while US West Texas Intermediate futures for September advanced 0.83% to $78.83 a barrel.

Iran’s Revolutionary Guards insisted on Sunday that they would not reopen the Strait of Hormuz until the US complied with a list of demands.

Tehran insists on retaining control of the waterway – through which a fifth of world oil and LNG pass – after the war and wants to charge tolls for passage, which Washington has pushed back against.

Attacks in the strait, which was free to transit before the war, led to the collapse of an April ceasefire, and mediators have urged both sides to return to the terms of a subsequent June memorandum that set out a path for peace talks.

Iran on Saturday released a list of conditions for reopening the strait, including an end to the war on all fronts, the lifting of a US counterblockade of Iranian ports, the end of sanctions, the release of frozen assets and compensation for wartime damage, the Tasnim news agency reported.

Those conditions echoed the terms of the June agreement, which included a provision to create a $300 billion reconstruction fund for Iran.

Iran’s Revolutionary Guards said on Sunday that their strategy was to maintain their blockade “until the enemy accepts all our conditions… the strait is now actually a theatre of war for us and not just a waterway”.

For his part, US President Donald Trump said in an interview: “We are low-keying it.”

“We are only semi-negotiating with them,” he was quoted as saying. “We are just watching Iran with its huge inflation and the fact they have no money.”

“It will work out,” he added. “It’s like a chess game.”

Additional sources • AFP

Published on
04/08/2026 – 8:09 GMT+2

In addition to earnings reports this week, investors were also still weighing the impact from last week’s joint US-Japan currency intervention, analysts said.

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Japan’s benchmark Nikkei 225 slipped 0.3% to 63,585.58, as the US dollar inched up to 157.51 Japanese yen from 157.18 yen. The euro cost $1.1511, little changed from $1.1514. The dollar was trading at 160-yen levels before regulators stepped in to boost the yen’s value after it fell to nearly 40-year lows.

Some analysts said the effectiveness of such an intervention remains uncertain as it doesn’t address the fundamental economic reasons behind the currency fluctuations, including inflation, interest rates and the relative strengths of the economies.

“A US-backed operation carries far more signaling weight than Tokyo acting alone, and the pledge of further action will give speculators pause. But any US contribution will probably be constrained by size,” a report by BMI, a unit of Fitch Solutions, said.

Matthew Ryan, head of market strategy at global financial services firm Ebury, noted the latest effort could have some impact because it appears to signal a real change in monetary policy rather than just a one-time defensive move.

“This is an historic and meaningful development for the yen, which materially improves confidence in our mildly bullish call for the currency,” he said.

Markets unsettled

South Korea’s Kospi sank 1.3% to 6,174.72. Australia’s S&P/ASX 200 added 1.2% to 9,129.00. Hong Kong’s Hang Seng fell 0.5% to 25,881.99, while the Shanghai Composite gained 0.2% to 3,802.61.

Markets remain unsettled by swings for stocks of companies that make computer chips. They’ve been veering up and down for weeks on worries about whether their surging revenues because of the artificial-intelligence boom are sustainable.

Dow hits all-time high

On Wall Street, share prices rallied Monday after easing oil prices helped calm worries over inflation. The S&P 500 jumped 1.5% and is just 0.1% below its record set earlier this summer.

The Dow Jones Industrial Average, which measures a narrower slice of the US stock market, climbed 693 points or 1.3% to an all-time high, while the Nasdaq composite leaped 2.1%.

Oil prices rebound

In energy trading in Asia early Tuesday, benchmark US crude gained 84 cents to $81.18 a barrel. Brent crude, the international standard, jumped $1.15 to $84.92 a barrel.

A day earlier, oil prices dropped more than 5% after US President Donald Trump said over the weekend that he had decided to hold off on new strikes against Iran at the urging of allies in the region.

Brent’s price careened between $72 and $102 last month as worries rose and fell over the war in Iran and when oil tankers would be allowed to freely exit the Persian Gulf again to deliver crude to customers worldwide.

The yield on the 10-year Treasury sank to 4.68% from 4.75% late Friday. It remains well above its 3.97% level from before the war with Iran.

Additional sources • AP

The price for a barrel of Brent crude oil for October delivery lost 5.16% to $83.39 a barrel, while US crude, or WTI, futures for September delivery declined nearly 6% to $79.66 per barrel.

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Crude declined after US President Donald Trump said fresh talks with Iran would begin later in the day, easing concerns over potential supply disruptions. Additional downward pressure came after Saudi Arabia, Russia and five other key members of OPEC+ agreed in an online meeting on Sunday to boost oil production by 188,000 barrels a day from September, against a backdrop of disruption caused by the Middle East conflict.

“The seven participating countries decided to implement a production adjustment of 188 thousand barrels per day,” they said in a joint statement.

The increase, decided by the key countries in the enlarged Organisation of the Petroleum Exporting Countries, was widely expected by analysts.

“OPEC+ has finished unwinding its voluntary cuts. The next challenge is managing the surplus that could emerge as export flows normalise,” Jorge Leon, analyst at Rystad Energy, said.

He warned, however, that the decision “changes little in the near term because (the Strait of) Hormuz remains constrained. The real market impact will come when normal export flows resume.”

The Gulf countries have struggled to increase exports due to the near-paralysis of the Strait of Hormuz orchestrated by Iran during the war in the Middle East – despite a brief upswing in shipping traffic after a US-Iran memorandum of understanding was signed in June.

Many OPEC+ members cannot produce as much oil as their official targets allow due to a “decline in production capacity”, so increasing targets has become less meaningful, Giovanni Staunovo, an analyst at UBS, said.

Future pause foreseen

The September increase, agreed by OPEC+ countries Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, completes the unwinding of the second of the three production-cut packages introduced by organisation.

“Having completed the restoration campaign, OPEC+ has little incentive to rush into further supply changes. Our base case is a fourth-quarter pause while the group prepares for the 2027 quota negotiations,” Rystad Energy’s Leon said.

“For now, geopolitics is masking the scale of the supply increase. That will become much clearer once export flows normalise,” he added.

It remains unclear when the group will actually be able to increase its oil volumes. Some member countries, such as Iraq, have expressed a desire to significantly boost production.

Russia, though, is confronted with repeated Ukrainian drone attacks on its oil infrastructure that have crimped production, currently hovering around nine million barrels per day – compared with a target of 9.8 million barrels per day.

OPEC+ “faces potentially difficult talks over new production quotas” starting next year following the September increase, according to analysts at DNB Carnegie.

Between late 2022 and 2023, OPEC+ became concerned that oil prices were falling, and agreed to cut oil production in three separate rounds, reducing total output by nearly six million barrels per day.

But Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, Oman and the United Arab Emirates – before the latter’s exit from the group on May 1 – then changed their strategy by gradually upping production starting in 2025.

“I don’t think cohesion is at risk at this very moment,” Leon said, warning, however, that the UAE’s withdrawal from the group in May has highlighted a weakness in this area.

Published on
20/07/2026 – 10:53 GMT+2

Oil prices jumped in early trading as the US announced further attacks for a ninth consecutive night. Iran has responded to the strikes by targeting US allies across the Middle East.

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Brent crude, the international benchmark, rose 3.2% to $90.95 per barrel, while US benchmark crude climbed 2.8% to $84.04 per barrel.

“The US and Iran continue to exchange strikes, which are proving to be deadly for both sides,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a commentary on Monday.

“If this escalation goes unchecked, we could return to an environment of widespread attacks across the Persian Gulf,” they added.

Tanker traffic through the Strait of Hormuz, a crucial waterway for global oil transport, has nearly ground to a halt, adding to pressure on supplies, they noted.

Elsewhere, AI-related shares including chipmaking stocks declined on Friday, pulling world markets lower. Pledges of huge spending on AI are fuelling worries the sector may be in a bubble, and many investors have opted to sell to lock in profits from recent big gains.

“The return to war in the Strait of Hormuz may start to weigh more heavily on financial markets before too long, especially if even strong tech earnings reports continue to be met with scepticism,” Jonas Goltermann, chief markets economist at Capital Economics wrote in a note Monday.

Markets were also shaken by the rollout of another powerful Chinese AI model, this time by Beijing-based Moonshot AI.

The impact of the new Kimi K3 open-source AI model was similar to when China’s “ DeepSeek moment” rattled world markets in early 2025. It was viewed as another sign of how lower-cost, capable Chinese AI models are increasingly challenging rivals like Anthropic’s Claude and OpenAI’s GPT.

Additional sources • AP

Published on
14/07/2026 – 7:53 GMT+2

The price of Brent crude climbed to just over $84 a barrel after soaring nearly 10% on Monday. US benchmark crude was up 1.4% at $79.20 a barrel.

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Oil prices are still below their wartime peak of nearly $120 a barrel, but uncertainty over the future stability of supplies deepened as the US and Iran each asserted they controlled the Strait of Hormuz.

US share futures were down 0.3% as the U.S. launched more strikes on Iran after President Donald Trump said Washington was “reinstating” a blockade on Iran in the strait.

Fighting in the region has kept oil tankers from using the waterway to deliver crude to customers from the Persian Gulf, driving up fuel prices worldwide.

Asia-Pacific shares slip overnight

In Asian trading, Tokyo’s Nikkei 225 lost 1% to 66,574.96 and the Kospi in South Korea declined 3.2% to 6,589.37.

The Shanghai Composite index lost 0.8% to 3,884.32, even though the government reported that China’s exports jumped 27% in June from a year earlier as adoption of artificial intelligence drove strong demand for computer chips and other technology.

Hong Kong’s Hang Seng edged 0.1% higher, to 24,230.46, while in Australia, the S&P/ASX 200 shed 0.5% to 8,767.00.

Monday on Wall Street, the S&P 500 fell 0.8%, coming off its fourth winning week in the last five. The Dow Jones Industrial Average dropped 0.3%, and the Nasdaq composite sank 1.6%.

Chip stocks like Micron Technology helped lead the way lower. Micron fell 4.4%, eating into what had been a stellar rise of 243.1% for the year so far.

Worries are rising that stock prices have shot too high and that the demand may not be sustainable if AI doesn’t deliver as much profit and productivity as expected.

Nvidia fell 3.5%. Because it’s the largest stock on Wall Street by value thanks to the euphoria around AI, it was the single heaviest weight on the S&P 500.

Investors turn to earnings

Much of Wall Street’s attention this week will be on profit reports from companies saying how much they earned during the spring. On Tuesday alone, Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo are all releasing their latest quarterly results.

Analysts are forecasting that companies in the S&P 500 index will deliver overall growth of 23.6% from a year earlier, according to FactSet. If they’re right, it would be the second straight quarter of growth better than 20%.

Companies across industries will need to deliver strong growth to justify the big moves their stock prices have made. Indexes are near records despite their sharp recent swings due to worries around AI stocks.

More costly oil would push inflation higher, potentially leading the Federal Reserve and other central banks to raise interest rates. Higher rates can keep a lid on inflation, but they also slow the economy and hurt prices for all kinds of investments.

In other dealings early Tuesday, the US dollar slipped to 162.34 Japanese yen from 162.35 yen. The euro rose to $1.1391 from $1.1381.

Additional sources • AP

Published on 13/07/2026 – 6:56 GMT+2•Updated
6:59

The price of Brent crude, the international benchmark, gained 3.9% to $78.96 per barrel, while the US benchmark crude oil price rose 4% to $74.26 per barrel.

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Prices for both types of crude oil had recently slipped back to the levels seen before the war with Iran began, after the two sides reached an interim agreement to end the conflict and ships resumed transporting oil through the Strait of Hormuz.

However, the United States launched several waves of strikes on Iran early on Monday morning following an Iranian attack on a container ship in the Strait of Hormuz that set the vessel ablaze and left one crew member missing over the weekend. Iran retaliated by targeting countries across the Middle East.

US stock futures fell, with the contract for the S&P 500 down 0.4% and that for the Dow Jones Industrial Average 0.3% lower. Nasdaq Composite futures lost 1%.

In Asian trading, Tokyo’s Nikkei 225 index lost 1.1% to 67,786.86, while in Seoul, the Kospi declined 5.6% to 7,060.69.

Shares in South Korean memory chipmaker SK Hynix, which soared 13% on their Wall Street debut on Friday, slumped 10.6% in Seoul. Its bigger rival, Samsung Electronics, fell 6.7%.

Elsewhere in Asia, Hong Kong’s Hang Seng edged 0.1% higher to 24,202.41, and the Shanghai Composite index shed 1.2% to 3,947.34.

In Australia, the S&P/ASX 200 declined 0.3% to 8,777.00.

US stocks ticked higher on Friday after investors showed sustained appetite for winners of the artificial intelligence (AI) boom. The S&P 500 rose 0.4% and the Dow Jones Industrial Average added 0.3%. The Nasdaq Composite climbed 0.3%.

SK Hynix’s shares jumped after trading began at midday after it raised roughly $26.5 billion by selling American depositary shares at a price of $149 each.

SK Hynix’s stock in Seoul had already surged more than 600% over the past year thanks to enthusiasm for AI. The boom has translated into real profits, driven by soaring demand for computer memory. But it has also raised concerns that AI stock prices have climbed too high and that the world’s spending on chips and data centres will not generate enough productivity and profit growth to justify the investment.

That has led to sharp swings in AI stocks, which have become some of Wall Street’s most influential because of their enormous market values.

Nvidia was the single biggest force lifting the S&P 500 on Friday, rising 4%.

Beyond the uncertainty surrounding AI, investors are turning their attention to the upcoming corporate earnings season.

Companies across industries will need to deliver strong profit growth to justify their elevated share prices, which remain close to record highs. This week will bring earnings reports from many of the biggest US banks, including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo, with several reporting on Tuesday alone.

Concerns about how the continued fighting with Iran will affect the global flow of crude oil are clouding the outlook for both energy costs and overall inflation.

High bond yields have been weighing on financial markets worldwide because more expensive oil and persistently high inflation could prompt the Federal Reserve and other central banks to raise interest rates.

Higher interest rates can help keep inflation under control, but they also slow economic growth and weigh on the prices of all kinds of investments.

Additional sources • AP

Shares fell on Wednesday in Europe and Asia, and oil prices surged nearly 6% after US President Donald Trump said the tentative ceasefire with Iran was over, raising the prospect of renewed military conflict between the two countries.

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Asked whether the memorandum of understanding with Iran was over, Trump told reporters at the NATO summit in Ankara: “To me, I think it’s over. I don’t want to deal with them,” according to Reuters.

This came after US Central Command said its forces struck more than 80 targets in Iran overnight, including command-and-control networks, coastal radar installations, anti-ship missile capabilities and vessels operated by the Islamic Revolutionary Guard Corps (IRGC). Washington also revoked a waiver that had allowed Iran to restart oil exports.

Brent crude, the international standard, jumped more than 6% by 10:45 CEST to $78.79 a barrel, while US benchmark crude rose 6.3% to $74.88 a barrel. Both had declined recently to around the levels seen before the war with Iran began in late February.

The latest flare-up, despite commitments to seek a peaceful resolution to the conflict, has added to uncertainty over oil prices after they fell from their peak well above $100 during the war. It also comes amid worries that the craze for artificial intelligence-related shares has pushed prices beyond the productivity gains and profits likely to result from massive investments in computer chip production capacity and data centres.

“As such, geopolitical headlines will likely determine market sentiment over the coming hours. A further deterioration in the situation could weigh further on equity valuations along with rising stress in technology,” Ipek Ozkardeskaya of Swissquote said in a commentary.

Stock markets fall

In share trading, Germany’s DAX shed more than 2.2%, at around 11 CEST, while the FTSE 100 in London lost 1.5%, and France’s CAC 40 fell more than 2%.

US stock futures were down about 1% at the same time.

In Asia, Tokyo’s Nikkei 225 lost 2.1% to 66,819.05, while South Korea’s Kospi shed 5.4% to 7,246.79.

The South Korean index has soared and then fallen back, briefly surpassing the 9,000 level last month before succumbing to heavy selling in AI-related technology shares such as Samsung Electronics and SK Hynix. Samsung fell 6.3% early Wednesday after dropping about 7% the day before. SK Hynix reversed early gains to fall 5.7%.

Taiwan’s Taiex rose 0.6%. In Hong Kong, the Hang Seng rose 3% to 24,193.56.

Shares in Chinese AI model start-up Zhipu, also known as Z.ai and traded as Knowledge Atlas Technology, rose nearly 14% on Wednesday.

The Shanghai Composite index declined 0.5% to 3,970.88.

On Tuesday, the roller-coaster ride for AI stocks turned lower again, dragging Wall Street down. The S&P 500 fell 0.4%, though the majority of stocks within the index rose.

Losses among AI-related stocks dragged the Nasdaq Composite 1.2% lower, while the Dow Jones Industrial Average fell 0.2%.

Advanced Micro Devices sank 6.5%, Intel shed 9.7%, and Micron Technology lost 4.7%.

SpaceX, which owns the xAI business, fell 6.8% on its first day of trading in the Nasdaq-100 index.

Rivian Automotive dropped 18.1% after the electric vehicle company said it would sell 75 million shares, diluting existing shareholders’ stakes.

In currency trading early Wednesday, the US dollar rose to 162.26 Japanese yen from 162.11 yen. The euro climbed to $1.1426 from $1.1414.

It will come just before the summer holidays

Jet2 is set to make a key announcement on Wednesday.

Shareholders in what is one of Britain’s largest package holiday operators will be eagerly awaiting news on whether US-Iran peace negotiations have helped boost travel demand and stabilise jet fuel supplies as the summer booking season gets under way. Jet2 is set to unveil its full-year financial results on Wednesday, following a turbulent period for the travel sector.

The airline and package holiday giant informed investors it was anticipating an operating profit of between £435 million and £440 million for the year ending March. Passenger bookings for the summer were up in April compared with the same period last year, across both package holidays and flights, fuelling hopes of a bumper season ahead.

Jet2 disclosed that holidaymakers were increasingly leaving it later to book their trips, suggesting that anxiety surrounding the Middle East conflict was pushing travellers towards last-minute decisions.

AJ Bell analysts Russ Mould and Dan Coatsworth said shareholders will be keen to learn how travel demand has held up since US President Donald Trump announced he had struck a peace deal with Iran last month.

“Jet2’s commentary on current trading will be much more important than its full-year numbers to March 31,” they said. “Reports suggest holiday companies have enjoyed a strong bounce in trading since Donald Trump said a peace deal had been agreed with Iran.

“We’ve already seen oil prices return to pre-Iran war levels and there are reports from various holiday companies of a surge in bookings to Cyprus and Turkey.”

Jet2 offers holidays to both destinations and throughout the Mediterranean. The effective closure of the Strait of Hormuz, which had severely restricted shipping since the outbreak of the Iran war, resulted in a drop in the global supply of jet fuel, prompting some airlines to scale back their summer travel schedules.

However, Jet2 moved to reassure holidaymakers in May that its flight schedule would run as normal throughout the summer, and pledged not to impose surcharges on any pre-booked trips to offset the increased costs.

In addition, the company launched its first flights from a brand new base at London Gatwick airport earlier this year, which it hopes will unlock bookings from an extra 15 million potential customers.

Published on 03/07/2026 – 10:07 GMT+2•Updated
10:11

Stock markets across Asia mostly advanced on Friday, taking their cue from a fresh record close for the Dow on Wall Street, as some of the AI-linked shares battered in this week’s sell-off found their feet again while others kept falling.

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The volatility was calmer than the heavy selling seen a day earlier, when worries about stretched technology valuations sent semiconductor shares tumbling across the region.

At the time of writing, South Korea’s Kospi led the bounce, climbing over 4% to recoup part of the nearly 8% plunge it suffered on Thursday. Samsung Electronics, the country’s largest company and a major chipmaker, jumped 7%, while smaller memory rival SK Hynix rose 4.9%.

In Tokyo, the Nikkei 225 added 1%, helped by a 6.6% leap in memory maker Kioxia, although chip-equipment supplier Tokyo Electron slipped 2.5%.

Elsewhere, Hong Kong’s Hang Seng gained 1.7% and the Shanghai Composite rose 0.7%, while Australia’s S&P/ASX 200 advanced 1.3% and Taiwan’s Taiex bucked the trend, easing 0.6%.

As for European markets, both the Euro Stoxx 50 and the broader pan-European Stoxx 600 opened within a 0.3% range.

The UK’s FTSE 100, Germany’s DAX 30, France’s CAC 40 and Italy’s FTSE MI, all traded between 0.1% and 0.3% higher.

Spain’s IBEX 35taly’s FTSE MIB led the pack and rose about 0.4%.

Wall Street’s record, a cooler jobs report and oil

US stocks were mixed on Thursday, but the Dow still managed a fresh peak, rising 1.1% to 52,900.

The broader S&P 500 ended virtually flat despite seven in ten of its members gaining, held back by another retreat in chip stocks, while the technology-heavy Nasdaq fell 0.8%.

Sentiment drew support from data showing US employers added 57,000 jobs last month, well below the 100,000 forecast and a slowdown on May.

A softer labour market could ease inflation pressure and, with oil back below its pre-war levels, may lessen the case for the Federal Reserve to raise interest rates repeatedly this year, an outcome investors would welcome.

Crypto-linked shares also firmed as Bitcoin rose about 2%, lifting Robinhood and Coinbase alongside it.

Still, the AI trade remained under strain.

Micron gave up an early gain to fall 5.5%, a day after a 10.6% slump, while Lam Research sank more than 10% and Nvidia, now worth close to $4.7 trillion, edged 1.4% lower.

On oil, Brent crude, the international benchmark, rose 1% to around $73 a barrel early Friday, while US crude added 0.5% to about $69, with prices still sitting below where they were before the Iran war began in late February.

Additional sources • AP

Published on
02/07/2026 – 9:39 GMT+2

Most Asian stock markets dropped on Thursday, dragged down by a wave of selling in semiconductor shares, as European bourses made a subdued start and Wall Street looked set to open in the red before the release of key US employment figures.

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The pullback centred on the technology sector, where investors retreated from the chip stocks that have powered much of this year’s rally, amid growing unease that the vast sums Big Tech is spending on AI could leave the market awash with supply.

South Korea’s Kospi bore the worst of it, tumbling around 5% as its heavyweight chipmakers slid. Memory specialist SK Hynix lost close to 8% and Samsung Electronics fell more than 6%.

In Tokyo, the Nikkei 225 shed about 1.5%, with chip-equipment maker Tokyo Electron down around 5.6%, while Taiwan’s Taiex slipped 1.1% as TSMC, the world’s largest contract chipmaker, gave up 1.8%.

The falls followed a rough session for chip stocks on Wall Street this Wednesday, where Micron Technology dropped more than 10% and Intel sank around 9%.

The moves stand in sharp contrast to a stellar year for Asian tech, with the Kospi and the Nikkei still up roughly 85% and 34% respectively in 2026.

On the other hand, Hong Kong’s Hang Seng rose about 0.8%, lifted by an 8.7% jump in electric-vehicle maker BYD after it reported a second straight monthly rise in sales, while India’s Sensex added 0.5%.

In Europe, markets opened flat as both the Euro Stoxx 50 and the broader pan-European Stoxx 600 traded within a 1% range at the start of Thursday’s session.

The UK’s FTSE 100, Germany’s DAX 30, France’s CAC 40 and Spain’s IBEX 35, all traded between 0.1% and 0.3% higher.

Italy’s FTSE MIB led the pack and rose about 0.4%.

Oil extends its slide and US jobs in focus

Crude prices fell again, trading below where they sat before the Iran war began in late February, as hopes grew that supplies through the Strait of Hormuz will steadily recover.

Brent crude, the international standard, eased around 1% to about $70.89 a barrel while WTI, the US benchmark, dropped 3% to roughly $69.

Attention now turns to the US, where stock futures edged lower ahead of the June employment report, brought forward a day because of Friday’s Independence Day.

Economists polled by Dow Jones expect around 115,000 jobs were added last month.

The figure carries extra weight under the new Federal Reserve chair, Kevin Warsh, with investors wary that a strong reading could harden the case for keeping interest rates higher for longer.

According to economists at Capital Economics, demand for AI may keep growing but at a slower pace than many expect, a caution that helped sour sentiment towards the sector.

Additional sources • AP

Millions of Brits are planning to go to Spain this summer

As the summer peak draws near, Brits travelling to Spain are facing a frustrating double blow.

Not only are there long border queues caused by the EU’s new Entry/Exit System (EES), but data has uncovered a huge a dramatic surge in flight delays. New research from AirAdvisor shows that Spanish routes are currently the worst affected for UK travellers, with two popular holiday destinations experiencing a sharp decline in reliability compared to last year. Overall delay rates have more than doubled at Palma in Mallorca, leaping from 3.66% to 7.60%.

Meanwhile, at Alicante Elche airport, delays have nearly tripled, rocketing from 4.39% to 11.73%. This means approximately one in nine departures is running at least an hour late, according to the Majorca Daily Bulletin.

For passengers stuck in the Alicante backlog, the average wait for an already-delayed flight stands at a punishing 124 minutes. This frequently pushes arrival times beyond the crucial three-hour threshold, automatically entitling passengers to claim UK261 compensation.

The travel disruption comes amid a sharp rise in short-haul cancellations across 18 European airports, predominantly affecting budget routes under pressure from climbing oil prices. However, airlines attempting to use market volatility as an excuse to avoid compensation payouts have just been firmly shut down.

The European Commission has made clear that fluctuations in fuel prices are a standard commercial risk, rather than an “extraordinary circumstance.” Should an airline cancel or delay a flight purely because operating costs have become too high, they remain fully liable for passenger compensation.

Published on
22/06/2026 – 8:15 GMT+2

At the time of writing, Brent crude was down 0.91% at $79.12 a barrel, while US West Texas Intermediate (WTI) crude had fallen 0.70% to $75.32 a barrel.

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Lower crude prices reflected broader investor sentiment in early trading after Qatari and Pakistani mediators said the first round of negotiations between the US and Iran aimed at securing a final agreement to end the conflict had concluded with “encouraging progress”.

A memorandum of understanding signed last week includes a commitment to reach a final agreement within 60 days, an end to fighting on “all fronts” – including in Lebanon – and the reopening of the Strait of Hormuz.

Markets mixed as analysts monitor US-Iran negotiations

Meanwhile, Asian stocks were mixed on Monday, with markets in Japan and South Korea trading higher, while US futures traded lower.

Tokyo’s Nikkei 225 jumped 1.6% to 72,364.82 after reaching a new all-time high of 72,831.73 during intraday trading, helped by technology stocks fuelled by enthusiasm over the global artificial intelligence boom.

Japan’s SoftBank Group, the multinational investment holding company with a strong AI focus, rose 2.4%, while chip equipment maker Tokyo Electron gained 2.3%.

South Korea’s Kospi added 0.4% to 9,084.37 and was trading near record highs, led by AI-related shares. Memory chip maker SK Hynix surged 4.7%.

“We’re seeing another strong market today,” Neil Newman, managing director and head of strategy at Astris Advisory Japan, said. He cautioned that the Japanese market was “probably getting a little stretched” from an investor’s point of view, “especially with what’s going on in the Middle East”.

Hong Kong’s Hang Seng fell 1% to 23,690.86, while the Shanghai Composite Index edged 0.2% higher to 4,098.01.

Additional sources • AP

Oil fell sharply in early trading after US President Donald Trump and his Iranian counterpart, Masoud Pezeshkian, put their names to an initial accord to halt hostilities, a move expected to restore the flow of crude through the Strait of Hormuz, one of the world’s most important shipping arteries.

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At the time of writing on Thursday morning, the front-month contract on WTI, the US benchmark, was down by 2.3% to $75 a barrel, while Brent crude, the international gauge, traded 2% lower at around $78 a barrel.

Both remain above the roughly $70 level seen before the conflict, but they have fallen well below the peaks of more than $100 reached only weeks ago.

The deal sets a 60-day window for the two sides to negotiate a final settlement on Iran’s nuclear programme, with Tehran agreeing in the interim to dilute its stockpile of highly enriched uranium.

Crucially for energy markets, it lifts US-backed sanctions, allowing Iran to resume selling its oil freely, and clears the way for tankers to move crude out of the Persian Gulf once more.

US President Donald Trump has said the strait will be fully open by Friday and operate without transit charges, a pledge that has encouraged traders to bet on easing supply pressures.

After signing the memorandum of understanding, Trump stated, “oil down, stocks up”, with hand motions.

An oil market still running on depleted reserves

The optimism arrives against a strained backdrop.

In its June Oil Market Report, the International Energy Agency said strategic oil reserves across advanced economies had slipped to their lowest level since 1990, with government stockpiles in OECD countries down by 163 million barrels since the conflict began as emergency releases accelerated.

The agency also trimmed its outlook for global demand, which it now expects to contract through 2026 as elevated fuel prices and supply disruptions bite, before recovering next year.

It cautioned that any rebound in supply may be gradual, citing the slow clearance of mines and continued disruption to shipping routes even with the interim deal in place.

Flows through the Strait of Hormuz had already begun to recover, rising from a May low to around 12 million barrels a day in early June.

Stocks mixed after the Fed signals possible hikes

Equities offered a patchier picture following Wednesday’s losses on Wall Street, where the S&P 500 fell 1.2% after fresh Fed projections showed nearly half of policymakers expect at least one interest rate hike this year.

The Dow Jones Industrial Average shed 1%, and the Nasdaq Composite slid 1.3%.

In his first press conference as Fed chair, Kevin Warsh declined to forecast where rates would end the year and signalled a rethink of how the central bank communicates, dropping the customary hints about future policy direction from its statement.

US President Donald Trump, who had long pressed Warsh’s predecessor to cut rates, was unusually relaxed about the outcome.

“It’s all right. Whatever,” Trump told reporters in France as he attended the G7 meeting.

Asked about the prospect of a hike, he said it was “hard to believe” but that, with Warsh now in place, he was “guided by what he wants.”

US stock futures pointed higher early on Thursday, with contracts on the S&P 500 up 0.9% and on the Nasdaq Composite around 1.4% higher.

In Asia, Tokyo’s Nikkei 225 and South Korea’s Kospi both jumped 2.3%, helped by hopes for an end to the Iran war and strong demand for technology shares.

European trading was more subdued, with the Euro Stoxx 50 rising 1% but the broader pan-European Stoxx 600 trading flat.

The UK’s FTSE 100, Germany’s DAX 30, Italy’s FTSE MIB, Spain’s IBEX 35, the Netherlands’ AEX, and Switzerland’s CH20 all traded between 0.4% and 0.8% higher than their Wednesday close.

France’s CAC 40 led the pack and jumped roughly 1.3%.

Additional sources • AP

Published on
15/06/2026 – 10:09 GMT+2

Crude prices retreated on Monday as US President Donald Trump confirmed a peace agreement with Iran and both sides announced a lifting of their respective blockades of the Strait of Hormuz.

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At the time of writing, the front month contract on US West Texas Intermediate (WTI) crude was down almost 6% from Friday’s close to roughly $80 per barrel, while Brent crude, the international standard, dropped around 5% to about $83 per barrel.

The specific concessions made by each side are still unclear and there are questions surrounding whether the Prime Minister of Israel will respect the withdrawal of troops from southern Lebanon, which, according to the Prime Minister of Pakistan is included in the deal.

Benjamin Netanyahu has yet to publicly address the US-Iran deal, or the issue of Lebanon, and CNN has reported that the Prime Minister of Israel is seeking an urgent meeting with US President Donald Trump after this week’s G7 summit.

Nonetheless, markets are reacting swiftly to the prospect of the Strait of Hormuz slowly reopening and the potential that the Iran war is closer to ending than reigniting.

The freshly announced peace deal is currently expected to be signed on Friday.

European, Asian and US markets

At the open, European markets also rose on the news that there is meaningful progress in ending the Iran war.

Both the Euro Stoxx 50 and the broader pan-European Stoxx 600 traded over 1% higher at the start of Monday’s session.

The UK’s FTSE 100, Germany’s DAX 30, Italy’s FTSE MIB, Spain’s IBEX 35, the Netherlands’ AEX and Switzerland’s CH20, all traded between 0.5% and 1% higher than their Friday close.

France’s CAC 40 led the pack and rose almost 1.5%.

In the US, S&P500 futures traded over 2% higher and the teach-heavy Nasdaq 100 rose more than 3%.

In other trade dealings on Monday, Asia-Pacific markets jumped overnight with South Korea’s Kospi climbing over 5%, recovering from a 4% drop on Friday, while Japan’s Nikkei 225 also traded roughly 3% higher.

Australia’s S&P/ASX 200 rose 0.8%, while Hong Kong’s Hang Seng Index jumped about 0.5% and Shangai’s SSE climbed over 1.5%.

Investors are bracing for an ECB rate hike on Thursday. Markets expect the European Central Bank to raise rates by 25 basis points, which could weigh on growth and corporate earnings. Investors are also awaiting guidance on whether further hikes will follow.

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ING said in an analysis on Thursday morning that: “We expect the ECB to hike by 25 basis points from 2.0% to 2.25%, supported by a hawkish tone, but the bar has risen to surprise markets. Despite oil prices testing new lows earlier this week, the EUR curve is increasingly set on three rate hikes.”

Stock markets across Europe opened in positive territory despite the drop in Asian shares following another sell-off in AI-related stocks on Wall Street on Wednesday.

The Euro Stoxx 50 opened 1.2% higher but the broader pan-European Stoxx 600 rose was flat in early trading.

Germany’s Dax and France’s CAC 40 were both up by 1%, while the UK’s FTSE 100 led with a 1.2% gain. Meanwhile, Italy’s FTSE MIB rose by 0.7%.

In other dealings, Asian shares mostly fell on Thursday after another sell-off in artificial intelligence stocks weighed on Wall Street, while oil prices rose.

Japan’s Nikkei 225 lost 0.5%, South Korea’s Kospi fell 0.2%, and Australia’s S&P/ASX 200 slipped 0.2%. Taiwan’s Taiex declined 0.4%.

Hong Kong’s Hang Seng index edged 0.2% higher, while Shanghai’s Composite index dropped 0.2%.

On Wall Street, on Wednesday, the S&P 500 fell 1.6%, marking its first consecutive decline in three weeks. The Dow Jones Industrial Average dropped 1.9%, while the Nasdaq Composite lost 2%.

Wall Street has been unsettled since last week, when AI stocks reversed course after hitting record highs. Investors are weighing whether the recent pullback has eased concerns over excessive optimism or signals the beginning of a more prolonged downturn.

Super Micro Computer, which sells AI servers, plunged 28% after announcing late on Tuesday plans to raise $7 billion through sales of common stock and convertible preferred shares. Companies often seek to raise capital when share prices are elevated, though such moves can dilute existing shareholders’ stakes.

Micron Technology swung between gains and losses before ending down 4.7%. The stock has experienced sharp volatility in recent sessions, having fallen 7.7% last Thursday, dropped a further 13.3% on Friday and then rallied 9.9% on Monday. Despite the swings, its shares remain up 212.5% so far this year.

Nvidia, the chipmaker that has grown into a nearly $4.9 trillion company on the back of the AI boom, was the biggest drag on the S&P 500 after falling 3.7%. Broadcom, another major AI beneficiary, lost 5.1%.

Some pressure on AI-related shares may also be linked to investors raising cash ahead of several high-profile stock market debuts in the United States. SpaceX’s initial public offering could take place later this week.

Weakening stocks for companies with big fuel bills also pulled the market lower. United Airlines sank 6.2%, and cruise operator Carnival fell 6.3% after oil prices rose due to the latest fighting in the war with Iran.

Oil prices and US inflation

Brent crude rose 1.8% to $93.10 a barrel on Wednesday after President Donald Trump warned that Iran would “pay the price” for stalled negotiations between the two sides over the conflict. The war has effectively closed the Strait of Hormuz to oil tankers, disrupting crude shipments from the Persian Gulf to customers worldwide.

Higher oil prices have added to inflationary pressures. A report released on Wednesday showed US consumer prices rose in May at the fastest annual pace in three years.

Traders are increasingly betting that the Federal Reserve will need to raise its benchmark interest rate at least once this year in response to persistent inflation and a resilient labour market.

Higher yields can slow economic growth and weigh on a range of investments, including stocks and cryptocurrencies. They tend to hit the most highly valued assets hardest, and some critics argue that enthusiasm around AI has inflated a market bubble.

In early European trading, Brent crude was up by 0.5% at $93.60 a barrel, while US benchmark crude gained 0.7% to $90.70.

The US dollar traded at 160.58 Japanese yen in the morning. The euro rose slightly to $1.1542, and the UK pound cost $1.3377.

The gold prices dipped by 0.6% to $4,109.60 an ounce.

As the rally in AI stocks fades, investors were cautious at the open on Friday, with European markets opening to mixed sentiment following steep falls in Asian markets.

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Indices in London and Frankfurt quickly moved into negative territory, with the FTSE 100 dropping nearly 0.4% and the DAX losing 0.3% right after the opening. The Paris CAC 40 and the IBEX 35 in Madrid were both up 0.3%, while Milan’s main index was flat. So was the EURO STOXX 50, a benchmark index of 50 blue-chip companies from the eurozone.

Investors are awaiting the latest US non-farm payrolls report and keeping an eye on developments in the Middle East.

The US job data is important for forecasting what the Fed’s next move could be. Kathleen Brooks, research director at XTB, said in a market note, “There is now a near 40% chance of a rate hike by year-end. We expect financial markets to be extremely sensitive to today’s data,” adding that this will be the first such report with Kevin Warsh as chairman of the Federal Reserve.

In the UK, the latest data from Halifax showed that house prices unexpectedly declined in May. House prices fell 0.1% month on month, but were still up 0.5% year on year, missing expectations for a 1% jump.

Oil markets are awaiting further direction

Oil prices stabilised after falling on Thursday. Brent crude, the international benchmark, was slightly down and traded at $94.73 per barrel at 10:00 CET. It had been trading at about $70 per barrel before the start of the war in late February.

Benchmark US crude was little changed at $92.51 a barrel.

Oil prices remain under pressure as the Strait of Hormuz, a narrow waterway crucial for global oil and natural gas transport, remains effectively closed, and the war-induced energy shock is threatening to slow economic growth and fuel inflation in many countries.

American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, but the agreement has not been finalised. Meanwhile, developments in Lebanon have cast doubt on the prospects for a permanent end to the conflict.

On Thursday, the Iran-backed Lebanese militant group Hezbollah rejected the latest ceasefire agreement between the Lebanese and Israeli governments.

“While there are few signs of progress in US-Iran talks, the oil market continues to trade on expectations of an imminent deal that would resume flows through the Strait of Hormuz,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a report.

Asian markets lose steam as AI craze cools

Wall Street rallied on Thursday after falling oil prices and bond yields eased pressure on US stocks. Banks, small-cap companies and other stocks that had previously been left behind by the euphoria around artificial intelligence led the gains.

Banks also helped lead the market, including gains of 5% for Goldman Sachs, 4.7% for Fifth Third Bancorp and 4.4% for U.S. Bancorp.

They helped to more than make up for losses among some AI stocks, which took a sudden back seat after dominating the market. Analysts have been saying AI stocks may have run too high, becoming too expensive, and that the broader US stock market may be set for a slowdown following an unrelenting streak of nine straight winning weeks for the S&P 500, its longest since 2023.

On Wall Street on Thursday, computer chipmaker Broadcom’s shares sank 12.6% after it issued guidance that fell short of investors’ expectations, raising concerns about the wider AI and technology sector.

US memory chip maker Micron Technology dropped 7.7%, and cybersecurity company CrowdStrike Holdings fell 3.8%.

Still, the benchmark S&P 500 climbed 0.4%, and the Dow Jones Industrial Average gained 1.7% to a record high. The tech-heavy Nasdaq Composite edged 0.1% lower.

But in Asia, investors dumped key AI-related shares, with South Korea’s SK Hynix plunging 8.6% and Samsung Electronics shedding 5.4%.

The Kospi dropped 5.1% to 8,199.44. The index has roughly doubled over the past year, lifted by gains in major technology companies.

Japan’s Nikkei 225 slipped 1.3% to 66,573.85, with technology shares leading the decline, even as official data showed that Japan’s real wages rose for the fourth consecutive month. Chip equipment maker Tokyo Electron’s shares fell 7%.

Hong Kong’s Hang Seng declined 1.2% to 24,948.96, while the Shanghai Composite Index fell 0.3% to 4,045.45.

Australia’s S&P/ASX 200 fell 0.7% to 8,623.50.

Taiwan’s Taiex gave up 1.3%, while India’s Sensex was up 0.1%.

In other trading early on Friday, the US dollar fell to 159.96 Japanese yen from 160.03 yen. The euro was trading at $1.1635, up 0.2%. Gold prices were down 0.3%, trading at around $4,490.70.

It comes as hundreds of thousands of Brits leave the UK for a break

Jet2 has released an update regarding its half-term travel operations. This follows ongoing concerns about the potential impact of the US-Iran war and jet fuel supplies, though airlines including Jet2 and Ryanair have maintained there will be no immediate disruption.

In its statement released today (Wednesday, May 27), Jet2 revealed it had experienced its busiest weekend on record. It announced that it had seen an unprecedented number of passengers departing from airports across the UK for the May half-term break.

The most popular destinations during half-term included the Balearics, Canaries, Turkey, Mainland Spain, Portugal, Greece, Cyprus, Malta, Croatia and Bulgaria, as travellers capitalised on the key holiday period.

Jet2 is preparing for a hectic summer season and has an extensive programme available, with a fleet of 139 aircraft transporting passengers on their getaways from 14 UK airports to locations across Europe, the Mediterranean, Canary Islands and North Africa.

Steve Heapy, CEO of Jet2, said: “This weekend saw us operate a record-breaking weekend, as customers took advantage of the bank holiday weekend and May half-term and took off to the sunshine. Given the number of customers who travelled with us over the weekend, it is very clear how much people want to get away and enjoy their well-deserved holidays. With our famous Red Team looking after customers, holidaymakers can look forward to creating memories and be assured of a wonderful holiday.

“Everything is geared up and ready for a busy summer and our message to holidaymakers is that summer is very much on. We have always been very clear about our plans to operate as normal this summer, and the busy weekend shows just how eager customers are to get away.”

This follows the firm reassuring passengers that ‘summer is on‘ despite mounting concerns over jet fuel availability. The optimistic stance comes after the airline and tour operator received encouraging updates from fuel suppliers, who have confirmed increased production and extra imports of jet fuel.

It follows a report published just last week which saw Jet2 top a UK resilience ranking as the best protected UK airline against elevated fuel costs.

Ryanair boss Michael O’Leary echoed similar views on jet fuel, stating he had ‘no issues over jet fuel supply right now through to the end of September‘. However, he cautioned that he was ‘very concerned about the price of oil’ due to the ongoing disruption at the Strait of Hormuz.

This could result in ‘airlines failing all over Europe’, he warned. Ryanair, Europe’s largest airline by passenger numbers, announced on Monday that future profits would also likely take a hit.