Negotiating teams from the U.S. and Iran could return to Islamabad later this week for further peace talks, according to information from the Reuters news agency. However, a specific date has not yet been finalized. According to a high-ranking Iranian insider, delegations are keeping the window from Friday to Sunday open. U.S. President Donald Trump stated that Iran made contact on Monday and expressed a desire to reach an agreement. Tensions had previously been exacerbated by the U.S. military's blockade of Iranian ports, which further intensified the situation at the Strait of Hormuz.
OIL PRICES RETREAT
The prospect of negotiations caused the price of North Sea Brent to drop by nearly three percent at its peak, falling to 96.50 dollars per barrel. U.S. light crude (WTI) depreciated by up to approximately four percent to 95.20 dollars. At the beginning of the week, oil prices had surged after the U.S. military commenced a blockade of Iranian ports and talks in Pakistan to resolve the crisis initially failed.
As hopes for a de-escalation in the Middle East grew, the dollar simultaneously lost its appeal as a safe haven. The Dollar Index, which measures the value of the U.S. currency against a basket of other major currencies, eased by 0.2 percent to 98.1120, approaching its pre-war levels.
LVMH UNDER PRESSURE - STEELMAKERS IN DEMAND
Among individual stocks, the conflict in Iran weighed on the first-quarter business of luxury goods group LVMH, sending its shares into a downward spiral. The stock slid more than three percent at its peak in Paris. LVMH reported that the conflict reduced global group revenue by at least one percentage point. This was attributed to lower spending in shopping centers such as Dubai and a decline in travelers from the Middle East visiting Europe. CFO Cecile Cabanis stated that footfall in Middle Eastern shopping malls, which typically account for about six percent of LVMH's revenue, initially dropped by 30 to 70 percent, averaging a decline of about 50 percent. This confirmed a previous Reuters report. Experts suggest the setback at LVMH could signal broader issues across the sector. "LVMH is one of the best-managed groups in the industry," said Berenberg analyst Nick Anderson. "If they are doing everything right and still facing difficulties, it speaks to a general malaise within the sector."
In contrast, shares of steelmaker Salzgitter surged by 6.5 percent, while ThyssenKrupp also gained approximately four percent. The European Union has reached a provisional agreement to nearly halve steel imports and impose 50 percent tariffs on excess shipments. These measures are intended to protect the EU steel industry from overproduction in other countries.
(Report by Stefanie Geiger, edited by Ralf Banser. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets))
