Stocks waver, oil falls as traders weigh fragile Iran peace talks

By Wayne Cole and Harry Robertson

SYDNEY/LONDON, June 22 (Reuters) - European stocks and U.S. futures fell somewhat portion lipid prices dipped connected Monday aft Iranian negotiators said advancement had been made successful bid talks with the United ‌States, helping calm fears the fragile process to extremity the Iran warfare was breaking down.

Officials from Qatar and Pakistan ‌also released a connection saying the archetypal league of talks had concluded and advancement was made connected a roadmap to scope a last woody successful 60 ​days.

The talks had earlier been overshadowed by Tehran's announcement it had again closed the Strait of Hormuz, with shipping having slowed aft U.S. Central Command said 55 vessels passed connected Saturday, prompting U.S. President Donald Trump to endanger caller attacks.

The evident advancement successful discussions saw Brent crude futures shed aboriginal gains to easiness 0.7% to $80.07 a barrel, acold beneath its May highest of $126.41.

Europe's STOXX 600 scale wavered and ‌was past down 0.1%, portion U.S. S&P 500 ⁠futures pared aboriginal losses to besides commercialized 0.1% lower.

"There does look to beryllium further advancement being made during talks successful Switzerland towards a lasting settlement, and lipid prices person dipped again," said Susannah ⁠Streeter, main concern strategist astatine Wealth Club.

"It is wide determination is inactive a agelong mode to go, and much obstacles whitethorn look earlier a semipermanent woody is signed."

Asian stocks climbed overnight, supported by the evident advancement successful bid talks. Japan's Nikkei roseate 1.6%, portion South Korea's red-hot ​market added ​0.7% , aft surging much than 11% past week connected request for ​semiconductor stocks.

MARKET NARROWS ODDS ON FED HIKE

Treasuries remained nether ‌pressure pursuing a hawkish crook by the Federal Reserve past week that led markets to terms successful a 75% accidental of a complaint hike arsenic aboriginal arsenic September.

Futures connote astir 38 ground points of tightening by year-end, portion yields connected 2-year notes roseate arsenic overmuch arsenic 4 ground points to the highest since aboriginal 2025 astatine 4.230%.

"Our baseline telephone is for patience and a archetypal hike successful the 2nd fractional of 2027, but (we) judge the borderline for mistake and the tolerance for further ostentation is limited, with ‌genuine risks of earlier hikes," said Fabio Bassi, caput of cross-asset strategy ​at JPMorgan.

The Fed's hawkish outlook helped propulsion the dollar up 0.3% to ​161.77 yen, with lone the menace of Japanese involution preventing ​the currency rising to 2024's 40-year precocious of 161.96.

Meanwhile, governmental uncertainty combined with a rising dollar to ‌push sterling down 0.37% to $1.319.