New York stocks surged following reports of a potential two-week truce between the United States and Iran, boosting semiconductor shares. The Philadelphia Semiconductor Index jumped 6.34%, raising questions about further upside potential amid heightened risk appetite.
Base Metals Show Mixed Close
Base metals ended the session with mixed results despite news of a tentative US-Iran ceasefire agreement. London Metal Exchange copper futures rallied 3.2% to close at $12,709, driven by improved global risk sentiment. However, aluminum and other metals saw initial gains evaporate amid concerns over Middle East conflicts.
Traders worry that any escalation between the US and Iran could disrupt supply chains. Companies anticipating no major interruptions from Lebanon face ongoing external uncertainties. Israel launched strikes hitting more than 100 targets in Lebanon within 10 minutes, injuring at least 254 people.
Israeli officials maintain that Lebanon’s production capacity remains unaffected. Iran has resumed cooperation in the Strait of Hormuz following the strikes, enabling safe passage for oil tankers. Iranian leaders view their regime as secure despite the tensions.
Trump Weighs In on Regional Supplies
President Trump described Israel’s Lebanese production facilities as a “special supply source,” emphasizing they do not represent a major vulnerability. He noted that a US-Iran conflict could trigger broader supply chain disruptions, fueling market volatility.
Oil prices and the US dollar index partially recovered from earlier declines. Late-session US stock rebounds followed Trump’s statement that “Lebanon is not a ceasefire target, but Israel has agreed to exercise restraint there during negotiations.” The dollar index subsequently dipped below 99.
Risk assets found temporary relief in truce prospects, though scattered signs of persistent downside pressures emerge across markets. Full normalization hinges on stable regional dynamics and Hormuz Strait cooperation.
Precious Metals Gain on Safe-Haven Demand
Precious metals followed suit, with gold prices rising amid Trump tariff concerns and Iran strike risks. Similar geopolitical uncertainties linger, limiting the rally’s sustainability. Investors eye whether safe-haven flows intensify if tensions persist.
