Trump Rejects Iran Peace Offer, Brent Crude Surges 4% To $105.5, Asian Markets Mixed
Benchmark Indian indices are likely to open in the red as Brent crude jumped over 3 percent to around 104.8 dollars per barrel after US President Donald Trump rejected Iran's latest proposal to end the ongoing conflict, calling it "totally unacceptable." The development has heightened uncertainty over the US-Iran war. Meanwhile, Gift Nifty signals a negative start.
Benchmark Indian indices are likely to open in the red as Brent crude jumped over 3 percent to around 104.8 dollars per barrel. |
Mumbai: Benchmark indices are expected to open lower as crude oil prices jumped after US President Donald Trump rejected Iran's latest proposal to end the war, denting hopes of a near-term resolution to the conflict. Futures tied to major US indices traded lower in the early trade while Asian indices were largely mixed.
Over the weekend, Iran sent a new proposal to US negotiators, centred on ending the over two-month-long conflict, Iran's semi-official news agency Tasnim said. The counteroffer didn't include commitments about Tehran's nuclear program, according to a report by Dow Jones Newswires. In response, Trump, in a social media post Sunday, said that Iran's reply to the US proposal to end the conflict was unacceptable.
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"I have just read the response from Iran's so-called 'Representatives.' I don't like it - Totally unacceptable!" The July futures contract of Brent crude in the Intercontinental Exchange rose 4.2% to $105.5 per barrel following Trump's rejection.
At 0820 IST, the contract traded over 3% higher at $104.8 per barrel. Trump's rejection of Iran's latest offer to end the war points to the risk of prolonged uncertainty over the US-Iran conflict, Dow Jones Newswires reported, citing MUFG Bank's Lloyd Chan in a research report.
Heavyweight SK Hynix surged almost 12% in early trade, and shares of its parent company, SK Square Co., were up nearly 6%. Samsung Electronics was also over 6% higher, and the benchmark KOSPI index was up by more than 4%. Japan's Nikkei 225 index touched a new high, but it pared all gains and slipped into negative territory.
In another development, China announced that Trump will make a state visit from May 13 to 15 at the invitation of President Xi Jinping. The two leaders and their delegations are expected to work through a sweeping agenda spanning trade, technology, rare-earth export controls, Taiwan, the war in Iran, and artificial intelligence, according to media reports. The May futures contract of Gift Nifty indicates a negative start to the domestic market.
Disclaimer: This story is from the syndicated feed. Nothing has been changed except the headline.
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