The Tamesis
Asian stocks were mostly higher on Friday and oil prices edged lower on hopes that the United States and Iran are close to reaching the first part of a peace settlement.
U.S. Vice President Vance said the two sides were close to a deal, but President Trump, who was silent earlier on Friday, still needs to approve a deal to end the war that has devastated global energy supplies.
“It’s difficult to say exactly when or if the president will sign the memorandum of understanding,” Vance told reporters Thursday. “We’re going back and forth on a couple of language issues. We’re making a lot of progress here.”
See also: Pacific Nations Climate Fund Tied to Fossil Fuels
Oil markets have been volatile this week as investors weigh the possibility of a breakthrough between Washington and Tehran that could resume normal shipping through the crucial Strait of Hormuz.
According to US media reports, the potential deal would allow shipping through the strait to be unrestricted, without tolls or harassment, while Iran would clear mines within 30 days and the US would lift its naval blockade if commercial traffic resumes.
Those hopes were briefly dashed late Wednesday when the United States launched a new military strike against Iran, with Iran’s Revolutionary Guards targeting a U.S. air base in Kuwait and opening fire on four ships trying to pass through the Strait of Hormuz without authorization, Iran’s state broadcaster said.
As behind-the-scenes diplomacy continues, Washington and Tehran accuse each other of violating the truce.
Iran has yet to confirm any commitment to the deal, with sources telling Iranian media that any deal announced unilaterally by Trump will not be recognized.
But U.S. sources told AFP that by Thursday evening, negotiators were close to a deal to extend the fragile ceasefire for 60 days, pending approval by President Donald Trump.
The news reversed a sluggish start for stocks on Wall Street, with major averages ending the day higher.
On Friday, Iran’s Tasnim news agency quoted sources as saying that the text had not yet been finalized and that the wording of the potential memorandum of understanding “has undergone some changes in recent days.”
Qatar’s role in negotiations has grown, with the Gulf state’s state news agency saying late Thursday that Trump had called its ruler to discuss the “latest developments” in efforts to end the war.
Regional countries are still pushing for a resolution to the U.S.-Iran war despite a fragile ceasefire agreement that has been in place since April 8, hosting Iranian officials in Doha this week.
Seoul and Nikkei surge
Seoul led gains among Asian stocks on Friday, surging 3.6%, while Tokyo’s Nikkei closed at a record high. Sydney, Taipei and Hong Kong also posted healthy gains, while Shanghai fell 0.7% on the day.
Brent crude oil prices were flat at $93.68 a barrel after falling more than 1% earlier in the day, while West Texas Intermediate crude, the main U.S. benchmark, fell 0.3% to $88.67 a barrel.
In Europe, gains were higher in London, Paris and Frankfurt.
Wall Street rose on Thursday despite gloomy indicators, with the Federal Reserve’s preferred inflation gauge rising to its highest level since 2023 in April and first-quarter economic growth being revised down.
Although Trump has repeatedly called for lower interest rates to boost the economy, the combination of persistent inflation and slowing growth has reduced the likelihood of a rate cut by the Fed.
However, Matthew Martin of Oxford Economics wrote that “recession risks are easing as oil prices fall and the likelihood of the worst-case scenario recedes.”
“While the reduced risk of war has helped, the gains in share prices have been largely driven by a strong earnings season. The driver is overwhelmingly AI-related capital spending,” he said.
Artificial Intelligence Fuels Bull Market Rally
Global AI bullishness has recently fueled a historic rally, with chipmakers Micron and SK Hynix surpassing the $1 trillion market value this week.
In Europe, observers are awaiting a major gathering of EU leaders on Friday to discuss ways to address the trade deficit with China.
The European Commission will discuss what measures the 27-nation bloc should take to protect businesses on the continent from what Brussels calls ” Unfair competition from Chinese competitors.
Official data on Friday morning showed that France’s economy shrank 0.1% in the first quarter compared with the fourth quarter of last year, a downward revision from the previous zero growth figure.
Key figures around 0830 GMT
North Sea Brent crude oil: unchanged at $93.68 a barrel.
West Texas Intermediate crude oil: fell 0.3% to $88.67 a barrel.
Hong Kong’s Hang Seng Index: rose 0.7% to 25,182.39 points (closed).
TOKYO – Nikkei 225: up 2.5% to 66,329.50 (close).
Shanghai – Composite Index: fell 0.7% to 4,068.57 (closed).
LONDON – FTSE 100: up 0.2% to 10,446.78.
- AFP With additional input and editing by Jim Pollard
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