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Oil price slides as US and Iran pause fire; cancer treatments help AstraZeneca beat profit forecasts – business live
Oil prices dropped sharply on Monday morning after the US paused air strikes on Iran for a second consecutive night, easing fears of a wider Middle East conflict that had driven crude towards $100 a barrel last week. The de-escalation coincided with a busy morning for UK corporate news, including another takeover for the London Stock Exchange and a pre-IPO loss disclosure from Chinese fashion giant Shein, underlining the continuing wave of M&A activity hitting British-listed firms.
Brent crude fell 5.3% to $91.68 a barrel, with US military officials reportedly advising Donald Trump against resuming the bombing campaign, while Israeli PM Benjamin Netanyahu is expected to travel amid the ongoing diplomatic manoeuvring. Separately, DCC Energy agreed to a £5.75bn takeover by private equity firms KKR and Energy Capital Partners, offering shareholders £65.25 a share plus dividends, a 24% premium, joining Mitie, Intertek, easyJet, Beazley and Schroders in this year's string of London exits. Shein reported a $99m first-quarter net loss, versus $395m profit a year earlier, blaming the US scrapping a tariff exemption on small parcels, ahead of its planned Hong Kong listing; the article also notes AstraZeneca beat profit forecasts on strong cancer drug sales.
In short
- Oil prices fell over 5% as US pauses Iran strikes for second night
- DCC Energy agrees £5.75bn takeover by KKR and Energy Capital Partners
- Shein posts $99m Q1 loss ahead of Hong Kong IPO after US tariff change
Explained simply
Crude oil prices respond to concerns about potential conflicts in the Middle East, since disruptions to supply from that region can affect global energy costs. When military tensions escalate between major powers like the United States and Iran, oil traders typically push prices higher due to uncertainty about supply reliability. When tensions ease through diplomatic channels, prices usually fall as supply concerns diminish.
The London Stock Exchange has experienced a sustained wave of takeovers, with several established listed companies receiving purchase offers from private equity investors at significant premiums. Private equity firms are making large investments in British businesses, usually taking them away from public stock markets and restructuring them. This activity suggests these investors believe in the underlying value of these firms despite broader economic uncertainty.
Chinese fashion company Shein, planning to list its shares on the Hong Kong stock exchange, has reported mounting losses after the United States changed tariff policies affecting small package imports. By contrast, pharmaceutical firm AstraZeneca has delivered strong financial results driven by successful cancer treatment medicines, beating investor expectations. These differing outcomes illustrate how global policy changes and market conditions affect various companies unevenly.
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