Markets React to Trump-Iran De-escalation, OPEC+ Output Hike
President Donald Trump canceled a planned military strike on Iran after reportedly reaching an agreement that could lead to diplomatic de-escalation. This move sent oil prices sharply lower as investors reassessed geopolitical risk premiums. In parallel, the OPEC+ alliance approved an increase in crude output by approximately 188,000 barrels per day starting September, further easing concerns over supply tightness. U.S. stock futures rose on optimism surrounding reduced tensions and ahead of a key jobs report and busy earnings season. Japan and the U.S. also conducted their first joint currency intervention since 2011 to support the yen amid a sharp depreciation against the dollar. Meanwhile, AstraZeneca is reportedly exploring a potential $400 billion merger with Bristol Myers Squibb, which could become one of history's largest deals.
Topics: currency intervention oil prices stock market reaction U.S.-Iran relations