World shares are mixed and oil prices climb after CNN report that Israel
may plan to attack Iran
[May 21, 2025] By
ELAINE KURTENBACH
World shares were mixed Wednesday while oil prices jumped more than 1%
after a report by CNN said Israel may be planning an attack on Iranian
nuclear facilities.
A CNN report cited unnamed intelligence officials saying Israel may be
preparing for an attack on Iranian nuclear facilities. Oil prices tend
to rise with conflicts that might disrupt oil supplies, and they jumped
early Wednesday but lost some of those gains by midday.
U.S. benchmark crude oil gained 93 cents to $62.96 per barrel while
Brent crude, the international standard, rose 90 cents to $66.27 per
barrel.
In talks on the nuclear issue, Iranian officials have warned they could
pursue a nuclear weapon with their stockpile of uranium enriched to near
weapons-grade levels. U.S. President Donald Trump has repeatedly
threatened to unleash airstrikes targeting Iran’s program if a deal
isn’t reached.
In early European trading, Germany's DAX fell 0.3% to 23,967.81, while
the CAC 40 in Paris declined 0.7% to 7,891.05. Britain's FTSE 100 was
little changed, at 8,780.46.
The futures for the S&P 500 and the Dow Jones Industrial Average were
down 0.6%.
In Asia, Tokyo’s benchmark Nikkei 225 fell 0.6% to 37,298.98. Gains have
been limited by the continued worries over higher tariffs Trump has
imposed on many U.S. trading partners since taking office. Earlier this
week, Japanese officials said they were insisting all of his higher
tariffs on imports from Japan be removed as part of talks with
Washington.
Japan's exports have slowed due to the tariffs, the government reported
Wednesday. Exports to the U.S., Japan's largest single trading partner,
fell almost 2% year-on-year in April and the annual rate of growth in
its global exports slowed to 2% from 4% in March, preliminary customs
data showed.
In a step that further weakened Prime Minister Shigeru Ishiba's
faltering administration, the agriculture minister, Taku Eto, resigned
after an outcry over comments he made about not having to buy rice, but
getting it for free, at a time when shortfalls in supply have pushed
prices of the staple grain sharply higher.
In Hong Kong, the Hang Seng picked up 0.6% to 23,827.78, while the
Shanghai Composite index edged 0.2% higher to 3,387.57.
Australia's S&P/ASX 200 surged 0.5% to 8,386.00, while the Kospi in
South Korea climbed 0.9%, to 2,625.58.
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Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI), top center left, and the foreign exchange
rate between U.S. dollar and South Korean won, top center, at the
foreign exchange dealing room of the KEB Hana Bank headquarters in
Seoul, South Korea, Wednesday, May 21, 2025. (AP Photo/Ahn Young-joon)
 Taiwan's Taiex advanced 1.3% and
India's Sensex gained 0.5%.
On Tuesday, the S&P 500 lost 0.4% for its first drop in seven days.
The Dow fell 0.3% and the Nasdaq composite fell 0.4%.
Treasury yields and the value of the U.S. dollar held relatively
stable following a brief jolt Monday morning after Moody’s Ratings
said the U.S. government no longer deserves a top-tier credit rating
because of worries about its spiraling debt.
U.S. government debt could be set to get even bigger with Washington
debating more cuts to taxes.
Stocks of companies in the travel industry led the way lower on
doubts about how much U.S. households will be able to spend on
summer vacations. Airbnb dropped 3.3%, Norwegian Cruise Line fell
3.9% and United Airlines lost 2.9%.
Home Depot slipped 0.6% after reporting a profit for the start of
the year that came up just short of analysts’ expectations, though
its revenue topped forecasts. The home-improvement retailer also
said it’s sticking with its forecasts for profit and sales growth
over the full year.
Target and Home Depot rival Lowe’s were due to report their latest
results later Wednesday.
A growing number of companies have recently said tariffs and
uncertainty about the economy are making it difficult to guess what
the upcoming year will bring.
Trump has delayed or rolled many of the stiff tariffs he has imposed
as he tries to compel companies to move manufacturing to the United
States. Investors are hopeful that Trump will eventually lower his
tariffs after reaching trade deals with other countries, but that’s
not a certainty.
In currency dealings, the U.S. dollar fell to 144.10 Japanese yen
from 144.51 yen. The euro rose to $1.1327 from $1.1284.
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