Oil prices rise slightly due to Mideast conflict, global stock markets dip

From Yahoo Finance: 2025-06-17 07:07:00

Oil prices ticked up slightly today as hopes for a quick ceasefire between Israel and Iran faded. President Trump urged Iranians to evacuate Tehran due to ongoing conflict. G7 nations support Israel, while Bank of Japan keeps interest rates unchanged and plans to slow balance sheet drawdown next year.

As the conflict escalates, energy infrastructure in Israel and Iran is affected. China stockpiles crude oil, potentially buying less in the future. U.S. crude prices remain below last year’s levels. Global stock markets dip, gold returns to previous levels, and U.S. Treasuries and the dollar see minimal movement.

BOJ keeps key rates unchanged, plans to buy more bonds next year. Fed likely to maintain policy due to trade war and oil price uncertainties. Trump plans to send letters on trade demands, while EU and Japan negotiations continue. U.S. Senate Republicans propose changes to tax cut bill.

Investors avoid long-term government bonds amid debt and inflation concerns. Trump’s pressure on Fed may impact rate decisions. Uncertainty affects U.S. financial conditions index, keeping interest rates steady. Events to watch include U.S. retail sales, Fed meeting, Bank of Canada policy, and U.S. Treasury securities sale.

Read more: Oil contained as Mideast war rages