Introduction: Crude oil falls after US waiver on Iran sanctions and peace talks progress
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Crude oil has fallen, after the United States waived sanctions on Iran for 60 days from Monday after the first talks to negotiate a permanent peace deal.
US vice president JD Vance said talks with Iranian officials in Switzerland had laid a “good foundation for a successful final deal” to end the war.
Brent crude fell 1.4%, more than $1, to $76.83 a barrel in early London trading, taking it closer to the $72 a barrel level seen before the US and Israel launched missile attacks on Tehran on 28 February.
The US and Iran agreed a roadmap towards a permanent agreement, building on the interim deal signed last week, within 60 days in the Qatari-owned mountain resort of Bürgenstock, according to mediators Pakistan and Qatar.
They also agreed on a mechanism to end fighting in Lebanon between US ally Israel and Iran-aligned Hezbollah, and opened a communications line to help ensure safe passage for commercial ships through the strait of Hormuz.
The US Treasury announced a waiver until 21 August on sanctions, allowing Tehran to sell oil and related products.
Asian shares fell sharply, however, and European and US stock futures are pointing to a lower open later, as amid mounting expectations that the Federal Reserve may take a more aggressive approach to tackle inflation later this year. Japan’s Nikkei tumbled 3.3% while South Korea’s Kospi plunged 9.3% and Hong Hong’s Hang Seng dropped 1.9%.
A full decade has passed since the Brexit referendum. Today marks the 10-year anniversary of the UK’s fateful vote to leave the European Union.
The Agenda
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8.15am BST-9am BST: France, Germany, eurozone S&P Global PMI surveys (flash ) for June
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9.30am BST: UK S&P Global PMIs flash for June
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11am BST: CBI Industrial trends survey
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1.15pm BST: US ADP jobs change weekly report
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2.45pm BST: US S&P Global PMIs flash for June
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6.30pm BST: Bank of England policymaker Swati Dhingra panel discussion at King’s College London: Brexit ten years on