FINWIRES · TerminalLIVE
FINWIRES

Oil Falls Amid Hopes of US-Iran Peace Deal

By
Oil Falls Amid Hopes of US-Iran Peace Deal

Oil prices fell on Friday following media reports that the US and Iran are nearing a potential peace deal, just days after the two sides exchanged strikes in a sharp escalation of tensions since a ceasefire in April.

West Texas Intermediate crude oil was down 1% at $86.82 a barrel, while Brent fell 1% to $89.50.

The US and Iran are edging closer to an interim agreement to reopen the Strait of Hormuz, Bloomberg News reported Friday, citing senior officials. The signing of the potential agreement could come on the sidelines of the Group of Seven summit starting next week in France. The agreement would extend the existing ceasefire by around two months and open further negotiations over Iran's nuclear program, according to the report.

Geneva is reportedly being floated as a possible location for the signing of the potential US-Iran agreement.

Iran's state-owned Mehr News Agency said the potential deal includes the US withdrawing forces from around Iran, lifting its naval blockade within 30 days, and providing $300 billion in reconstruction funding to Tehran, CNBC reported.

However, President Donald Trump said in a social media post on Friday that the reported terms have "nothing to do" with what Tehran agreed to in writing.

"What they said, including their weak and pathetic statement on having a deal, bears no relation to the truth," Trump wrote. "Very dishonorable people to deal with. With them, there is no such thing as dealing in good faith."

Trump had earlier said on social media that he cancelled scheduled strikes and bombings against Iran after talks with Tehran were brought to the "highest level" of Iranian leadership and "approved."

"Discussions and final points have been, in both concept and great detail, approved by all parties involved, including the US, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others," Trump said on Thursday. "The naval blockade will remain in full force and effect until this transaction is finalized."

Earlier in the week, US forces conducted airstrikes against Iran after Tehran shot down an American Apache helicopter. Iran launched retaliatory strikes on American military bases across Jordan, Kuwait, and Bahrain.

Related Articles

World Bank Cuts Growth Forecasts for Japan, China as Middle East Conflict Weighs on Asia
US Markets

World Bank Cuts Growth Forecasts for Japan, China as Middle East Conflict Weighs on Asia

The World Bank trimmed its 2026 growth forecasts for Japan and China on Thursday, citing rising energy prices, disrupted trade, and weakening demand stemming from the conflict in the Middle East.Global growth is forecast to slow to 2.5% in 2026, down from 2.9% in 2025, the weakest pace since the onset of the COVID-19 pandemic, according to the organization's June 2026 Global Economic Prospects report.The World Bank cut its 2026 growth forecast for Japan to 0.7% from its January estimate of 0.8% as rising energy prices weigh on consumption and exports. In 2025, the economy grew by an estimated 1.1%.GDP growth is expected to recover modestly to 0.9% in 2027 before easing again to 0.8% in 2028 as domestic demand improves on the back of lower inflation and higher wages.Meanwhile, growth in East Asia and the Pacific is projected to moderate to 4.2% in 2026 from 5% in 2025, with China's deceleration driven by subdued domestic demand amid low consumer confidence, the continued property sector adjustment, and a soft labor market, the World Bank said.Growth in China is projected to ease to 4.2% in 2026 from the estimated 5% increase in 2025. The latest forecast is down from the 4.4% estimate the World Bank issued in January.Momentum is expected to accelerate to 4.3% in 2027 before decelerating again in 2028 to 4.2%, "as energy prices ease while diminishing returns to capital, high debt, and demographic pressures continue to lower China's potential growth."Elsewhere, in South Asia, growth is projected to soften to 6.3% in 2026 from 7% in 2025, mainly reflecting the adverse impact of the Middle East conflict, including shortages of energy and agricultural products that put upward pressure on energy and food prices, according to the World Bank.However, the latest forecast for the region was up from 6.2% in January.Growth in India is projected to moderate to 6.6% in fiscal year 2026/27 from 7.7% in 2025, reflecting a slowdown in private demand growth as a result of higher energy prices and other input costs, though a reduction in Goods and Services Tax rates is expected to provide some support for consumer spending.In January, the World Bank estimated India's GDP growth for 2026 at 6.5%."Developing countries have faced a series of challenges over the last decade," said Ajay Banga, President of the World Bank Group."In response to the current shock, we are providing liquidity where it is needed now - and we are ready with additional financing, guarantees, and private-sector solutions if pressures deepen. Our job is to help countries steady the ship, keep reforms moving, and emerge stronger on the other side."Brent crude oil prices are projected to average $94 a barrel in 2026, 36% above 2025 levels, assuming that shipping through the Strait of Hormuz remains severely disrupted through July, the World Bank said.The institution warned that if energy supply disruptions prove more severe than currently assumed and are exacerbated by substantial financial stress, global growth could fall to 1.3% in 2026, with inflation forecast to rise to 4.4%.

$^BSE$^N225$^NSE$^NSEI$^SSEC$^SZSE
New Zealand's Manufacturing Sector Fights On Despite Contraction
US Markets

New Zealand's Manufacturing Sector Fights On Despite Contraction

New Zealand's manufacturing sector is seeing the impact of weakening customer demand and higher fuel prices, but remains above the lows seen a few years ago.Four out of five components that make up the BusinessNZ Performance of Manufacturing Index are still in expansion, even though the index crossed contraction territory to 49.9 in May from 50.4 in April and 52.8 in March.A reading over 50 shows that the sector is expanding, but a number below that points to a contraction.Head of Research Stephen Toplis said that the New Zealand economy can gain back momentum by the end of the year, given a possible resolution to the Middle East conflict, leading to a recovery for manufacturers.BusinessNZ flagged the risk of excess inventories as a wide gap was seen between finished goods stocks and new orders, which it said is "bad news" for future production.According to a Wednesday report by Westpac, the manufacturing sector is expected to increase by 2.8% of gross domestic product in the first quarter. It remains one of the biggest contributors to GDP as the impact of the Middle East conflict is yet to flow through into activity.The Reserve Bank of New Zealand on Tuesday reported that manufacturing operating income fell to NZ$35.7 billion in the March quarter, compared with NZ$36.8 billion in the December 2025 quarter.

$^NZ50
Adobe Second-Quarter Results Top Estimates; CFO Resigns
US Markets

Adobe Second-Quarter Results Top Estimates; CFO Resigns

Adobe's (ADBE) fiscal second-quarter results surpassed Wall Street's estimates amid strong artificial intelligence-driven demand, while the Photoshop maker said Chief Financial Officer Dan Durn resigned.Adjusted earnings per share rose to $5.96 in the three months ended May 29 from $5.06 a year earlier, compared with the FactSet-polled consensus of $5.82. Revenue jumped 13% to $6.62 billion, higher than the Street's $6.45 billion view.Adobe's record revenue in the second quarter reflected "strong AI-driven demand across our customer groups," Chief Executive Shantanu Narayen said in a statement.Annualized recurring revenue exiting the quarter was $27.10 billion. Analysts expected $26.60 billion. AI-first ARR tripled year over year to more than $500 million, according to the company.RBC Capital Markets expected Adobe to deliver "solid" results and ARR above consensus expectations.Subscription revenue jumped 14% year-over-year to $6.42 billion.Durn will leave the company on June 15, Adobe said. Its customer experience orchestration business unit CFO, Steve Day, will serve as interim CFO.Adobe's shares were down 6% in after-hours trading. The stock declined nearly 38% so far this year through Thursday close.Marvell Technology (MRVL) said late Thursday that it appointed Durn as CFO, effective June 15.As announced in March, Narayen plans to step down as Adobe's CEO after a successor has been appointed.Adobe raised its fiscal 2026 adjusted EPS outlook to between $24.35 and $24.45 from the prior guidance of $23.30 to $23.50. Revenue is pegged at $26.50 billion to $26.60 billion, up from $25.90 billion to $26.10 billion previously expected.Analysts are modeling non-GAAP EPS of $23.54 and revenue of $26.06 billion.For the third quarter, Adobe projected adjusted EPS of $6.05 to $6.10 on revenue between $6.67 billion and $6.72 billion. The market consensus indicates $5.77 and $6.52 billion, respectively.

$ADBE$MRVL