2025-06-16 00:54

Oil falls on reports Iran sought a ceasefire US stock indexes end higher, following global counterparts Busy central bank week ahead Investors eye Tuesday release of US retail sales data NEW YORK, June 16 (Reuters) - Stock indexes closed higher after last week's losses and a barrel of oil got $1 cheaper on Monday as investors took heart from reports that Iran was seeking to end hostilities with Israel, and stayed confident in their predictions for a busy week of central bank meetings. Oil prices fell after the Wall Street Journal reported Iran was seeking a truce following an attack by Israel on Friday that raised fears of wider conflict, sent oil prices soaring, and weighed on stocks. Sign up here. Sources told Reuters that Iran has asked regional allies to press U.S. President Donald Trump to influence Israel to agree to a ceasefire. Geopolitics still loomed, with early cracks threatening to emerge among Group of Seven leaders, who are meeting in Canada. Officials gave conflicting statements about whether Trump would sign a draft statement calling for de-escalation of the Israel-Iran conflict. "In terms of an escalation, where the U.S. is going to get involved or where it's really going to be all-out war, where nothing is sacred anymore, I don't think that's going to happen," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "It's probably a short-lived situation, so I think the market is rallying on that." Following a torrid session on Friday, Brent crude futures settled at $73.23 per barrel, down $1 or 1.35%. The Dow Jones Industrial Average (.DJI) , opens new tab ended 0.75% higher, the S&P 500 (.SPX) , opens new tab was up 0.94% and the Nasdaq Composite (.IXIC) , opens new tab gained 1.52%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab marched 1.09% higher after the U.S. open and stayed stronger on the day to be quoted up 0.88% after the U.S close. Earlier in the trading day, Europe's STOXX 600 (.STOXX) , opens new tab was boosted by a rebound in travel stocks (.SXTP) , opens new tab and Gulf stocks also recovered. Chinese blue chips (.CSI300) , opens new tab gained after data showed rising retail sales and industrial output in line with expectations. SS FED MEETING IN FOCUS, MORE DATA TO COME A prolonged rise in oil prices could contribute to inflation, but movements of recent days are unlikely to strongly influence discussions when the Federal Reserve meets on Wednesday, said Emily Roland, co-chief investment strategist at Manulife John Hancock Investments. "The Fed is data-dependent, and it takes time for the impact of oil prices (higher or lower) to feed into the inflation numbers," Roland said. "In our view, the Fed likely keeps the markets waiting with no change to the view of between two to three rate cuts of 0.25% by the end of the year. The bond market is still pricing in two cuts over the year, we will see if this week changes things." U.S. retail sales data is due on Tuesday and may show a pullback in autos, dragging the headline number down even as core sales edge higher. A market holiday on Thursday means weekly jobless claims figures will come out on Wednesday. U.S. Treasury yields had initially fallen on the reports of Iran's outreach to Israel, but rose again ahead of the data release. The 10-year notes were last seen yielding 4.456%, from 4.424% late on Friday. Central banks in Norway and Sweden also meet this week, with the latter expected to trim rates. The Swiss National Bank meets on Thursday and is considered certain to cut by at least a quarter point to take rates to zero, with some chance it may go negative given the strength of the Swiss franc. The Bank of Japan holds a policy meeting on Tuesday and is widely expected to hold rates at 0.5%, while leaving open the possibility of tightening later in the year. There is also speculation it could consider slowing the rundown of its government bond holdings from next fiscal year. The calmer mood across markets saw some of gold's safe-haven bid reverse and it was down 1.38% to $3,384.97 an ounce. . https://www.reuters.com/world/china/global-markets-wrapup-1-2025-06-16/

2025-06-16 00:45

XRG-led consortium offers 28% premium to Santos' last close Takeover faces risk securing regulatory approvals, analysts say Santos shares jump 11%, well below offer price June 16 (Reuters) - Australia's second-largest gas producer Santos (STO.AX) , opens new tab said on Monday it intended to support an all-cash $18.7 billion takeover bid from an international consortium led by Abu Dhabi's National Oil Company (ADNOC), which wants to grow a global gas business. Santos shares jumped 11% by the close on Monday, but that was well short of the 28% premium offered against their previous close, which analysts said reflected risks that the deal may not win regulatory approval in Australia. Sign up here. ADNOC's investment arm XRG with Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle proposed to offer $5.76 (A$8.89) per Santos share. The stock last traded at A$7.72. Taking into account net debt, the deal gives Santos an enterprise value of A$36.4 billion, which would make it the largest all-cash corporate buyout in Australian history, according to FactSet data. "For ADNOC, this is in line with their aggressive growth plans," said Kaushal Ramesh, vice president, gas and LNG research, at Rystad Energy. The takeover bid emerged as oil prices reached multi-week highs as Israel and Iran traded air strikes, sparking concerns oil exports from the Middle East could be widely disrupted. With Santos in its fold, the XRG-led consortium would gain control of two Australian liquefied natural gas operations - Gladstone LNG and Darwin LNG, as well as stakes in PNG LNG and the undeveloped Papua LNG. Santos' interests in Papua New Guinea are considered its most prized assets. The company is also developing an oil project in Alaska, Pikka, due to start producing in mid-2026. XRG said in June it aims to build a gas and LNG business with capacity of between 20 million and 25 million metric tons a year by 2035. Santos last year sold 5.08 million tons of LNG, with more than 60% of that from Papua New Guinea. "What ADNOC really wants is the LNG assets, since they are inside the Asia Pacific basin. Since their plan is to expand in LNG, they will want assets close to where the future of demand lies," Rystad's Ramesh said. Australian Treasurer Jim Chalmers, who makes the ultimate decision on major takeovers based on advice from the Foreign Investment Review Board, declined to comment on whether he had any concerns about an ADNOC-led takeover of Santos. "It would be a big decision," he said in an interview with Australian Broadcasting Corp TV. Santos said the latest offer came after it had rejected two previous proposals made by the consortium in March at $5.04 and $5.42 per share that were not made public. Its board said if a binding offer is made it "intends to unanimously recommend that Santos shareholders vote in favour of the potential transaction, in the absence of a superior proposal." The XRG consortium said it was negotiating to carry out due diligence with Santos on an exclusive basis before formalising the offer which would need at least 75% support from Santos investors. "The proposed transaction is aligned with XRG's strategy and ambition to build a leading integrated global gas and LNG business," it said in a statement. XRG, which was set up in November, last month acquired a stake in an offshore gas block in Turkmenistan. ADNOC has also struck several international deals for assets to sit under XRG, including gas and LNG interests in Mozambique. REGULATORY HURDLES COULD BE STEEP Santos said the deal required approval from Australia's Foreign Investment Review Board (FIRB), Australian Securities and Investments Commission, National Offshore Petroleum Titles Administrator, PNG Securities Commission, PNG Independent Consumer and Competition Commission and Committee on Foreign Investment in the United States (CIFIUS). XRG said it would maintain Santos' headquarters in South Australia, in a move to try and appease some regulators. MST Marquee senior energy analyst Saul Kavonic said FIRB approval "may be a major risk to the deal" as Santos controls significant critical energy infrastructure in Australia. Any spin-off of domestic infrastructure assets to potentially satisfy regulators would be difficult, as the facilities are saddled with decommissioning costs, he said. Santos rejected a $10.8 billion offer from private equity-backed Harbour Energy in 2018 and walked away from talks with its bigger Australian rival Woodside Energy (WDS.AX) , opens new tab last year to create a possible A$80 billion oil and gas giant, saying it would look for other ways to bolster its value. In February it reported a nearly 16% fall in underlying annual profit in 2024 and cut its dividend by 41%. While Santos has long been a takeover target, Kavonic said a competing bid "is very unlikely as only ADNOC may be willing to pay such a premium to realise their global LNG ambitions." ($1 = 1.5425 Australian dollars) https://www.reuters.com/business/energy/australias-santos-receives-takeover-offer-adnoc-valuing-firm-187-billion-2025-06-15/

2025-06-16 00:45

WASHINGTON, June 15 (Reuters) - Four people have been killed and four more are missing after flash flooding in West Virginia, the state's governor said on Sunday. West Virginia Governor Patrick Morrisey told reporters that about 3 to 4 inches of rain fell in less than an hour, causing Saturday's flooding in Ohio County, in the northern part of the state. Sign up here. "There is a lot of rain that has hit in a short period of time. We also know that there could be more rain coming soon," Morrisey said. "Please don't get out onto the road," he added. Morrisey said his office had been in touch with the Federal Emergency Management Agency. https://www.reuters.com/sustainability/climate-energy/four-killed-four-missing-after-flash-flooding-western-virginia-2025-06-16/

2025-06-16 00:37

LATEST DEVELOPMENTS: Iran calls for ceasefire, offers nuclear negotiation flexibility IAEA reports extensive damage to Iran's uranium enrichment plant Iran death toll at 224, Israel death toll at 24, officials say Oil prices dip, easing supply disruption fears TEL AVIV/DUBAI, June 16 (Reuters) - An Israeli strike hit Iran's state broadcaster on Monday while the head of the U.N. nuclear watchdog indicated extensive damage to Iran's biggest uranium enrichment plant and Iran called on the U.S. to force a ceasefire in the aerial war. Late on Monday, Israel said it hit Iran's broadcasting authority, and footage showed a newsreader hurrying from her seat as a blast struck. Israel's military said the building also served as a communications centre used by Iran’s armed forces. Sign up here. The conflict entered its fifth day on Tuesday, with air raid sirens sounding in Tel Aviv shortly after midnight as Iran launched additional missiles toward Israel. Iran's Foreign Minister Abbas Araqchi told four European counterparts that Iran was serious about diplomacy but its current focus was on confronting aggression, Iranian state media reported. Israel has said its goal is to eliminate Tehran's ability to develop a nuclear weapon. Iran says more than 224 Iranians have been killed, most of them civilians. Israel says 24 people have been killed, all of them civilians. Sources told Reuters that Tehran had asked Oman, Qatar and Saudi Arabia to press U.S. President Donald Trump to use his influence on Israeli Prime Minister Benjamin Netanyahu to push for an immediate ceasefire. In return, Iran would show flexibility in nuclear negotiations, said the two Iranian and three regional sources. "If President Trump is genuine about diplomacy and interested in stopping this war, next steps are consequential," Araqchi said on X. "Israel must halt its aggression, and absent a total cessation of military aggression against us, our responses will continue. It takes one phone call from Washington to muzzle someone like Netanyahu." Asked if he would agree to talks should Trump want that, Netanyahu told reporters that Israel was committed to removing the threats of both nuclear weapons and ballistic missiles. "If this can be achieved in another way - fine. But we gave it a 60-day chance," Netanyahu said. Speaking to Reuters on Friday, the first day of Israel's assault, Trump said he had given the Iranians 60 days to come to an agreement to halt uranium enrichment and that the time had expired with no deal. Talks between the United States and Iran, hosted by Oman, had been scheduled for Sunday but were scrapped, with Tehran saying it could not negotiate while under attack. Iranian media said Iran was preparing for the "largest and most intense missile attack" yet against Israel, including against military and intelligence targets. NATANZ DAMAGE Israel launched its air war with a surprise attack that killed nearly the entire top echelon of Iran's military commanders and its leading nuclear scientists. It says it now has control of Iranian airspace and intends to escalate the campaign in coming days. Israel said it hit Iranian F-14 fighter planes at Tehran airport on Monday, and its airstrikes have also put at least two of Iran's three operating uranium enrichment plants out of action. Rafael Grossi, head of the International Atomic Energy Agency, told the BBC on Monday it was very likely all the roughly 15,000 centrifuges operating at Iran's biggest uranium enrichment plant at Natanz were badly damaged or destroyed because of a power cut caused by an Israeli strike. There had been very limited or no damage at the separate Fordow plant, he said. Tehran for the first time in decades of shadow war and proxy conflict fired missiles from Iran that pierced Israeli defences in significant numbers and killed Israelis in their homes. Round-the-clock television images showed Israeli rescuers working in ruins of flattened homes. Almost 3,000 people have been evacuated from their homes since Iranian strikes began, leaving 24 buildings slated for demolition, Israeli Finance Minister Bezalel Smotrich told reporters. Iranian state TV broadcast scenes of collapsed presidential buildings, burned-out cars, and shattered streets in Tehran. Many residents were trying to flee the capital, describing queues for petrol and bank machines that were out of cash. "I am desperate. My two children are scared and cannot sleep at night because of the sound of air defence and attacks, explosions. But we have nowhere to go. We hid under our dining table," Gholamreza Mohammadi, 48, a civil servant, told Reuters by phone from Tehran. Trump has consistently said the Israeli assault could end quickly if Iran agrees to U.S. demands that it accept strict curbs to its nuclear programme. "As I've been saying, I think a deal will be signed, or something will happen, but a deal will be signed, and I think Iran is foolish not to sign," Trump told reporters on the sidelines of the G7 summit in Canada. "I think Iran is basically at the negotiating table," he said without elaborating. On Monday, Iranian lawmakers floated the idea of quitting the nuclear non-proliferation treaty, a move bound to be seen as a setback for any negotiations. Iran has always said its nuclear programme is peaceful, although the IAEA declared last week that Tehran was in violation of its obligations. 'PAYING THE PRICE' Before dawn on Monday, Iranian missiles struck Tel Aviv and Haifa, killing at least eight people and destroying homes. Iran's Revolutionary Guards said the latest attack employed a new method that caused Israel's multi-layered defence systems to target each other so missiles could get through. Israel's Haifa-based Bazan energy group said its power station had been significantly damaged in an attack that killed three employees and forced its refinery facilities to shut down. Oil prices slipped $1 per barrel on Monday in volatile trading after reports that Iran is seeking an end to hostilities, raising the possibility of a truce and easing fears of a disruption to regional crude supplies. The sudden killing of so many Iranian military commanders and the apparent loss of control of airspace could prove to be the biggest test of Iran's system of clerical rule since the 1979 Islamic Revolution. https://www.reuters.com/world/americas/israel-iran-battle-escalates-will-be-high-agenda-world-leaders-meet-2025-06-16/

2025-06-15 23:05

Brent, WTI drop as reports suggest Iran seeking de-escalation Iran asked Arab neighbors to press US president for Israeli ceasefire Key oil export infrastructure spared so far in worsening Israel-Iran conflict NEW YORK, June 16 (Reuters) - Oil prices slipped $1 per barrel on Monday in volatile trading after reports that Iran is seeking an end to hostilities with Israel, raising the possibility of a truce and easing fears of a disruption to crude supplies from the region. Brent crude futures settled $1, or 1.35%, lower to $73.23 a barrel. U.S. West Texas Intermediate crude futures fell $1.21, or 1.66%, to $71.77 per barrel. Sign up here. Iran has asked Qatar, Saudi Arabia and Oman to press U.S. President Donald Trump to use his influence on Israel for an immediate ceasefire in return for Tehran's flexibility in talks about its nuclear program, two Iranian and three regional sources told Reuters. Earlier, the Wall Street Journal had reported Iran was seeking a truce. Traders pared bets that bombing by both sides could turn into a broader, regional war that would threaten energy infrastructure, Mizuho analyst Robert Yawger said. On Friday, oil prices surged more than 7% after Israel began bombing Iran over claims Tehran was close to securing an atomic bomb. Friday's surge put oil in "overbought territory" in terms of technical indicators, which is typically followed by a downward move, said Rory Johnston, an energy analyst and founder of the Commodity Context newsletter. "As I see it, the initial run up in prices on Thursday/Friday was fueled by a large inflow of speculative cash, which brought us back into overbought spec positioning levels," Johnston said. "When you're in that state, the market is especially vulnerable to sharp liquidations," Johnston added. Both Israel and Iran have traded airstrikes, including on energy infrastructure, but key oil export facilities have not yet been hit. "The Israelis have not touched Kharg Island, so that is the story right now," Mizuho's Yawger said, referring to the Iranian oil export hub. Yawger said any strikes on Kharg Island would likely send oil prices soaring to $90 a barrel. "It all boils down to how the conflict escalates around energy flows," said Harry Tchilinguirian, group head of research at Onyx Capital Group. "So far, production capacity and export capacity have been spared and there hasn't been any effort on the part of Iran to impair flows through the Strait of Hormuz." Electronic interference with commercial ship navigation systems has surged in recent days around the Strait of Hormuz and the wider Gulf, which is having an impact on vessels sailing through the region, naval forces said on Monday. About a fifth of the world's total oil consumption, or some 18 to 19 million barrels per day of oil, condensate and fuel, passes through the strait. Iran, a member of the Organization of the Petroleum Exporting Countries, currently produces around 3.3 million bpd and exports more than 2 million bpd of oil and fuel. The spare capacity of OPEC+ oil producers to pump more to offset any disruption is roughly equivalent to Iran's output, according to analysts and OPEC watchers. https://www.reuters.com/business/energy/oil-prices-rise-israel-iran-conflict-heightens-fears-supply-disruptions-2025-06-15/

2025-06-15 18:17

Loan aims to reduce US reliance on China for rare earths Tanbreez project needs strategic investors for loan approval Tanbreez would be Trump administration's first overseas investment in mining project June 15 (Reuters) - Critical Metals Corp (CRML.O) , opens new tab has received a letter of interest from the U.S. Export-Import Bank (EXIM) for a loan worth up to $120 million to fund the company's Tanbreez rare earths mine in Greenland, in what would be the Trump administration's first overseas investment in a mining project. The loan, if approved, would boost U.S. access to minerals increasingly at the center of global economic trade and help offset the country's reliance on market leader China. It also comes after President Donald Trump openly mused earlier this year about acquiring the Danish island territory, an overture that has been repeatedly rejected. Sign up here. In a letter dated June 12 and reviewed by Reuters, New York-based Critical Metals has met initial requirements to apply for the $120 million EXIM loan and, if approved, would have a 15-year repayment term, longer than the company likely would have with private financing. The project would have to be "well-capitalized with sufficient equity from strategic investors" to receive the loan, the letter said. EXIM, which acts as the U.S. government's export credit agency, said in the letter that Critical Metals qualifies for a loan program designed to support companies that compete with China. The Tanbreez project is expected to cost $290 million and the EXIM funds would be used to fund technical work and get the mine to initial production by 2026. Once fully operational, the mine is expected to produce 85,000 metric tons per year of a rare earths concentrate and two minor metals. "This funding package is expected to unlock significant value for our project and our stakeholders," said Tony Sage, the company's CEO. Representatives for EXIM were not immediately available to comment. The move is the latest in a series of supportive actions by Washington toward the Tanbreez deposit and Greenland's mining sector. Reuters reported in January that former President Joe Biden's administration had successfully lobbied privately held Tanbreez Mining not to sell to a Chinese developer and instead sell to Critical Metals. Biden officials were visiting Nuuk as recently as last November trying to woo additional private investment , opens new tab in the island. Trump sent Vice President JD Vance to the island in March. The island's mining sector has developed slowly in recent years, hindered by limited investor interest, bureaucratic challenges and environmental concerns. Currently, only two small mines are in operation. Rare earths have strong magnetic properties that make them critical to high-tech industries ranging from electric vehicles to missile systems. Their necessity has given rise to intense competition as Western countries try to lessen their dependence on China's near-total control of their extraction and processing. Beijing in April put export restrictions on rare earths as part of its trade spat with Trump. The two countries earlier this month reached a truce, although Beijing's control of the sector has exacerbated the West's over-reliance and sparked a global hunt for fresh supplies. Despite the loan potential, Critical Metals would still have to either build a processing facility or find an existing site with spare capacity. The company told Reuters that its goal is to process the material inside the U.S., a goal the EXIM loan would make more achievable. Last year, Critical Metals had applied for funding to develop a processing facility from the U.S. Department of Defense, but the review process stalled ahead of Trump's January inauguration. For the EXIM loan's additional funding requirements, Critical Metals said it is considering offtake agreements, royalty streams and funding from other U.S. governmental agencies. Critical Metals told Reuters earlier this year that it has held supply talks with defense contractor Lockheed Martin (LMT.N) , opens new tab, among others. Critical Metals' 10th-largest investor is brokerage firm Cantor Fitzgerald (CNTOR.UL), which was formerly led by Howard Lutnick before he joined Trump's cabinet as secretary of the U.S. Commerce Department. Sage told Reuters in January he had never met or talked to Lutnick, but acknowledged Cantor's investment was a positive for his company. EXIM last year extended a letter of interest to Perpetua Resources (PPTA.O) , opens new tab for a loan worth up to $1.8 billion for its antimony and gold mine in Idaho. https://www.reuters.com/business/us-export-import-bank-considers-120-million-loan-greenland-rare-earths-project-2025-06-15/