Published on 08/06/2026 - 7:39 GMT+2•Updated 10:18

Crude oil prices rose early in the session after Israel carried out airstrikes on Monday against central and western Iran following earlier missile launches. Iranian state television noted explosions in Isfahan, Tabriz and Tehran but offered no further details right away.

US and Iranian negotiators had reached a preliminary accord last week to prolong their ceasefire, yet the pact remains unsigned and the newest strikes add pressure on peace efforts.

Iran's barrage reportedly led US President Donald Trump to contact Israeli Prime Minister Benjamin Netanyahu and urge restraint, even though Israeli commanders had pledged to respond once authorized.

"I am going to call Bibi right now and tell him not to retaliate," Trump told Axios journalist Barak Ravid during a phone interview, referring to the Israeli leader by his nickname.

"Israel had its strike and Iran had its strike. We don't need another one," Trump added according to the report.

Brent crude, the global benchmark, moved back above $100 a barrel to reach $100.6 at the time of writing, while US crude gained 5 percent to $96.5.

European markets open lower

Elsewhere in equities, major European indices began Monday in negative territory.

The Euro Stoxx 50 held steady while the wider Stoxx 600 fell about 0.6 percent in initial dealings.

Germany's Dax declined 1.19 percent, France's CAC 40 eased 0.94 percent and the UK's FTSE 100 slipped 0.35 percent. Italy's FTSE MIB dropped 0.44 percent.

In Asia-Pacific, South Korea's Kospi fell 8.3 percent to 7,484 points as Samsung Electronics tumbled more than 10 percent and SK Hynix lost over 7.5 percent.

Taiwan's Taiex declined 1.3 percent. Hong Kong's Hang Seng dropped 1.2 percent and the Shanghai Composite shed 1.7 percent.

Japan's Nikkei 225 fell nearly 4 percent after the government lowered its annualized growth estimate for the first quarter to 1.8 percent from the prior 2.1 percent reading.

Markets remained shut in Australia for the King's Birthday holiday.

Wall Street closed the prior week with the S&P 500 down 2.6 percent at 7,383.74 after a robust jobs report raised expectations the Federal Reserve may lift rates later this year.

The decline marked the largest single-day fall since 10 October when the Trump administration threatened a 100 percent tariff on Chinese imports. The Dow Jones Industrial Average fell 1.4 percent to 50,866.78 while the Nasdaq composite dropped 4.2 percent to 25,709.43.

Bond yields increased after data showed the US added 172,000 jobs in May, according to the Labour Department. The figures underscore continued employment strength despite inflationary pressures on firms and households.

The 10-year Treasury yield climbed to 4.54 percent from 4.50 percent just before the release. The 2-year Treasury yield, which tracks Fed policy more closely, rose to 4.16 percent from 4.04 percent ahead of the report.

The Fed has kept rates unchanged while assessing the effects of rising inflation, which has already increased due to tariffs. The US conflict with Iran has effectively halted crude shipments through the Strait of Hormuz.

In early Monday currency trading the US dollar edged higher to 160.35 Japanese yen from 160.25 yen. The euro stood at $1.1530, up from $1.1515.