Oil prices tumbled Thursday as president Donald Trump said the United States was close to making a deal on Iran鈥檚 nuclear programme, which could pave the way for increased crude supplies.
The dollar continued to face pressure amid uncertainty over tariffs, while Europe鈥檚 main stock markets steadied after larger losses in Asia.
鈥楾raders focused on the prospect of a US/Iran nuclear deal which could see economic sanctions lifted on the latter and potentially lead to greater supplies of聽oil,鈥� noted Russ Mould, investment director at AJ Bell.
Trump鈥檚 Iran remarks came after the Islamic republic held its fourth round of talks with the US administration, which has sought to avoid a threatened military strike by Israel on Tehran鈥檚 contested nuclear programme.
Both main crude contracts plunged around 3.5 per cent in value on hopes that US sanctions on Iran may be lifted as part of the deal, which could, in turn, increase the Islamic republic鈥檚 oil exports.
Share prices of British energy giants BP and Shell slumped in London on signs of progress on a deal.
However, London鈥檚 stock market edged up overall as official data showed Britain鈥檚 economy grew more than expected in the first quarter 鈥� before UK business tax hikes and US tariffs took effect.
Paris and Frankfurt stock markets dipped.
The European Union鈥檚 official data agency revised down eurozone growth to 0.3 per cent in the first quarter, with global trade tensions clouding the outlook.
Meanwhile, investors awaited fresh developments in trade talks, with countries looking to reach deals to avoid Trump鈥檚 tariff blitz.
With excitement from the China-US detente fading, markets are seeking new catalysts.
Stock markets have surged past the levels seen before Trump鈥檚 April 2 鈥楲iberation Day鈥� bombshell that hit countries worldwide with US tariffs.
Dealers are meanwhile turning their attention to hard economic data, hoping for an idea about the initial impact of Washington鈥檚 trade policies.
After figures Tuesday showing US inflation came in a little below forecasts in April, eyes are on wholesale prices and retail sales due Thursday, as well as earnings from retail giant Walmart, a bellwether for US consumer spending trends.
However,聽analysts pointed out that the real impact would not be seen until May鈥檚 figures are released and warned that there were still plenty of bumps in the road ahead.
