MSCI All-World index falls 0.15% after US cancels Iran negotiations, while yen weakens near 1986 levels amid intervention warnings.
Global equities retreated after US Vice President JD Vance canceled planned peace talks with Iran, unsettling investors. The MSCI All-World index dropped 0.15%, with European stocks down 0.12% and US futures slipping 0.1% to 0.2%. Markets were closed in the US for the Juneteenth holiday.
The yen hovered near its weakest level since late 1986, extending a six-week decline as the dollar strengthened. Japanese officials reiterated warnings of potential currency intervention. Oil prices fell below $80 a barrel after a ceasefire between Israel and Hezbollah eased regional tensions.
Tankers resumed transit through the Strait of Hormuz following the US lifting its blockade on Iran, adding supply pressure to crude markets. Analysts noted increased shipping activity could weigh on oil prices despite geopolitical risks.