NEW YORK – Stocks rose and oil prices retreated as fears of a wider Middle East conflict eased even as Israel and Iran pounded each other with missiles for a fourth day.
The dollar dipped against the euro and pound, while safe-haven gold declined slightly.
Wall Street’s main stock indices pushed higher, with the broad-based S&P 500 finishing up nearly one percent after spending the entire day in positive territory.
In Europe, London, Paris and Frankfurt all closed the day with gains.
They tracked gains in Asia, where Tokyo closed up 1.3 percent, boosted by a weaker yen, while Hong Kong and Shanghai also advanced.
Israel’s surprise strike against Iranian military and nuclear sites on Friday — killing top commanders and scientists — sent crude prices soaring as much as 13 percent at one point on fears about supplies from the region.
However, concerns over the conflict spreading appeared to have receded, with both main oil contracts declining on Monday.
Analysts said the recent decision by the OPEC+ group of crude-producing nations, led by Saudi Arabia and Russia, to raise output again in July also played a role.
Investors were gearing up for monetary policy decisions this week from the US Federal Reserve, Bank of England and Bank of Japan.
All are expected to hold steady but traders will be keeping a close watch on their statements for clues on interest-rate outlooks, with US officials under pressure from President Donald Trump to cut borrowing costs.
Also in focus is the G7 summit in the Canadian Rockies, which kicked off Sunday, where the Middle East crisis will be discussed along with trade after Trump’s tariff blitz.
https://www.enca.com/business/oil-prices-drop-stocks-climb-iran-israel-war-fears-ease
