International News 23 June 2025
-
Oil Prices Surge to 5-Month High Amid US-Israel Strikes on Iran Nuclear Sites
Oil prices soared on Monday (June 23) to their highest levels since January, following US military action in coordination with Israel targeting Iran’s nuclear facilities. Brent rose 2.49% to US$78.93 per barrel and WTI climbed 2.56% to US$75.73, after briefly spiking over 3% during early trading. The gains were driven by fears of supply disruption, especially if Iran follows through on its threat to close the Strait of Hormuz—a critical passageway for nearly 20% of global oil shipments. As the third-largest oil producer in OPEC, Iran’s retaliation could severely impact supply flows. Iranian parliament has approved a motion to close the Strait, intensifying market concerns. Analysts warned of heightened risk to oil infrastructure, with Goldman Sachs forecasting Brent could hit US$110 if oil flow is halved for a month. Still, without real supply disruption, the geopolitical risk premium may not be sustainable, and profit-taking could limit further gains, according to Saxo Bank’s commentary.
US Dollar Slightly Rises Amid US-Iran Tensions as Markets Await Iran’s Response
The US dollar edged higher on Monday (June 23) following increased geopolitical tension after the US launched airstrikes on Iran’s nuclear site. Although the gains were modest, markets remained cautious, awaiting an official response from Iran. The escalation drove oil prices to a five-month high and weighed on global equities. The dollar gained against major currencies, with the DXY index rising 0.12% to 99.037. Markets are in a wait-and-see mode as investors weigh the potential inflationary impact of the conflict rather than immediate economic fallout. Analysts still view the US strike as a contained event, not the beginning of a broader war. Meanwhile, Iran has threatened retaliation and is considering closing the Strait of Hormuz, a vital global oil shipping route. Cryptocurrency markets showed signs of recovery, with Bitcoin rising 1.3% and Ethereum up 2.3% after sharp weekend declines.
Eurozone Still Weak, ECB May Need More Stimulus, Says Centeno
Mario Centeno, ECB policymaker and Governor of Portugal’s central bank, stated that the eurozone economy remains weak and still requires additional monetary stimulus. In an interview with Italian daily La Stampa, he emphasized that interest rates must align with current economic conditions to achieve stable 2% inflation. Although the European Central Bank has cut rates eight times over the past year, it has hinted at a possible pause in rate cuts in July. Nevertheless, Centeno believes the current economic environment is still too fragile to return inflation to target without further policy support.
https://internasional.kontan.co.id/news/ecb-masih-perlu-pangkas-bunga-demi-topang-ekonomi