The Japan Times - Oil, stocks mixed as US-Iran deal awaits Trump approval

Crude prices slipped after earlier jumping around 2.5 percent as a deal to stop a conflict that has all but halted shipping through the crucial Strait of Hormuz remains elusive.

The United States and Iran also earlier exchanged new strikes despite their purported ceasefire, rekindling uncertainty about an end to the Middle East war.

The strikes were the most serious since an April ceasefire and came despite a series of headlines suggesting talks on a deal were progressing.

But on Thursday, US sources told AFP that United States and Iranian negotiators had agreed on a framework for a 60-day ceasefire extension deal, although it still requires Trump's approval.

"Any news that we're getting closer to a deal is going to be received positively in the market," said Adam Sarhan of 50 Park Investments.

Following the news, Brent crude slipped 0.6 percent to $93.71 a barrel while primary US benchmark West Texas Intermediate edged up 0.3 percent at $88.90 a barrel.

Wall Street's major indices started sluggishly but closed higher, with the broad-based S&P 500 adding 0.6 percent and the Nasdaq Composite jumping 0.9 percent.

Major European indices closed in the red as London lost 0.8 percent while Frankfurt and Paris also pulled back.

Wall Street's gains came despite several gloomy indicators, with the Federal Reserve's preferred inflation gauge rising in April to its highest since 2023 and first quarter economic growth being revised lower.

The personal consumption expenditures (PCE) price index jumped 3.8 percent from a year ago, the Commerce Department said, in line with expectations and up from 3.5 percent in March as the economic fallout of Trump's Iran war continued to hit Americans.

The world's biggest economy also revised its first-quarter GDP growth to an annual rate of 1.6 percent from 2.0 percent, on lower-than-estimated investment and consumer spending.

The combination of persistent inflation and slowing growth lowers the chances of interest rate cuts by the Fed, despite Trump's repeated calls for lower rates to boost the economy.

"Even after stripping out energy prices, core PCE is sitting at a multi-year high. In response, the Fed has already taken on a more hawkish posturing in response to higher inflation," said Bret Kenwell, US investment analyst at eToro.

"The concern now is whether higher energy prices begin to filter into non-energy categories, making inflation harder for both consumers and the Fed to look through," he said.

Asian markets meanwhile saw losses, with the main benchmarks in Hong Kong, Taipei and Sydney closing down more than one percent. Shanghai was the sole major exchange to buck the trend, adding just 0.1 percent.

- Key figures at around 2015 GMT -

Brent North Sea Crude: DOWN 0.6 percent at $93.71 a barrel

West Texas Intermediate: UP 0.3 percent at $88.90 a barrel

New York - DOW: UP 0.1 percent at 50,668.97 points (close)

New York - S&P 500: UP 0.6 percent at 7,563.63 (close)

New York - Nasdaq: UP 0.9 percent at 26,917.47 (close)

London - FTSE 100: DOWN 0.8 percent at 10,425.96 (close)

Paris - CAC 40: DOWN 0.2 percent at 8,188.87 (close)

Frankfurt - DAX: DOWN 0.3 percent at 25,092.25 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,006.16 points (close)

Tokyo - Nikkei 225: DOWN 0.5 percent at 64,693.12 (close)

Shanghai - Composite: UP 0.1 percent at 4,098.64 (close)

Euro/dollar: UP at $1.1647 from $1.1629 on Wednesday

Pound/dollar: UP at $1.3441 from $1.3434

Dollar/yen: DOWN at 159.25 from 159.53 yen

Euro/pound: UP at 86.66 from 86.59 pence

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M.Matsumoto--JT