Weekly Market Updates

Israel strikes Iranian energy site as fragile talks face renewed pressure. Israel’s strike on the Mahshahr petrochemical complex marks the first confirmed hit on an Iranian energy asset since the April ceasefire, adding fresh pressure to already fragile US-Iran negotiations. The attack followed Iranian missile launches and Houthi threats to disrupt Israeli maritime activity in the Red Sea, reinforcing the risk that the wider conflict could again spill across key energy routes. Trump has insisted that peace talks remain close to a breakthrough and has pushed Israel to avoid further escalation, particularly in Lebanon, but the latest strikes show how limited Washington’s control over regional dynamics may be. Oil prices rose more than 3%, with Brent back above $96/bl, as traders reassessed the risk to Iranian infrastructure and Gulf shipping. Tehran continues to demand sanctions relief, release of frozen assets and recognition of its role over the Strait of Hormuz, leaving any deal politically and commercially difficult.