World shares fall, oil rises on renewed Iran-US strikes

By Tom Wilson

LONDON, June 10 (Reuters) - Global stocks connected Wednesday fell and lipid prices edged up arsenic Iran and the United States exchanged caller strikes and President Donald Trump said Iran would "pay the price" aft taking excessively agelong to negotiate, with investors besides focused connected U.S. ‌inflation information that could power the rates outlook.

The pan-European STOXX 600 scale turned antagonistic aft initially shrugging disconnected the renewed hostilities, and was past ‌down 0.6%. It fell further aft Trump's remark successful a societal media post, successful which helium said without elaborating that Iran had taken excessively agelong implicit a woody and would present "have to wage the ​price".

Wall Street futures besides extended losses connected Trump's comment, and were past down betwixt 1% and 1.2%. European authorities enslaved yields roseate connected his remarks.

Iran's Revolutionary Guards said they had carried retired rocket and drone attacks connected U.S. subject bases successful Jordan, Kuwait and Bahrain successful retaliation for American strikes connected Iranian targets astir the Strait of Hormuz. The clashes marked 1 of the biggest outbreaks of hostilities since the 2 countries agreed to a ceasefire successful April.

"It's an ongoing risk, though to a lesser extent," said Fleura ‌Shiyanova, cardinal expert astatine Kepler Unigestion successful Switzerland, of the ⁠Iran war. "The risks are overmuch much understood than they were astatine the beginning, but present the question is however agelong it volition last."

Earlier, MSCI's broadest scale of Asia-Pacific shares extracurricular Japan fell 2.3%. The tech-heavy South Korean KOSPI mislaid 4.5% arsenic AI stocks ⁠came nether pressure.

Investors were besides positioning themselves up of U.S. ostentation data, owed astatine 1230 GMT, and different large upcoming events specified arsenic the SpaceX IPO, Shiyanova said.

Oil prices reacted initially mildly to the strikes, edging up from seven-week lows touched successful the erstwhile session, but aboriginal extended gains. Brent futures roseate 1.7% to $92.88 a barrel, portion U.S. West Texas Intermediate ​WTI ​crude climbed 1.5% to $89.56. [O/R]

On Tuesday, U.S. stocks fell arsenic a rebound for tech shares fizzled, ​with worries implicit sky-high AI valuations, Middle East tensions and rising ‌rate hike bets dampening appetite for risk. The CBOE volatility scale .VIX, sometimes referred to arsenic Wall Street's fearfulness gauge, touched its highest intraday level since April 7.

INFLATION TEST AWAITS

Investors volition beryllium looking astatine U.S. ostentation information to gauge the interaction of the war. A Reuters survey of economists predicts ostentation apt accrued to 4.2% successful the 12 months done May successful what would beryllium the largest yearly emergence since April 2023.