Highlights: Trump says Iran asked to continue talks, US has agreed

Days after US President Donald Trump said that the ceasefire agreement with Iran was effectively "over" for him, Qatari negotiators have travelled to Iran on Friday in an effort to ease tensions and create conditions for the resumption of US-Iran talks following the recent military escalation in West Asia, CNN reported, citing a diplomat familiar with the visit.

According to CNN, the visit was planned in coordination with the United States, and the talks are aimed at reducing tensions and facilitating a possible return to negotiations between Washington and Tehran.

The move comes after a lull in fighting on Friday, following a sharp escalation in strikes from both sides that threatened to disrupt the agreement between the US and Iran.

Mediators are working to bring both sides back to the negotiating table.

In the last few days, there was military escalation between Tehran and Washington, during which the US alleged that Iran had been involved in attacks on commercial vessels transiting the Strait of Hormuz, following which its forces conducted several strikes on Tehran in retaliation. ANI

President Donald Trump on Friday said the United States had agreed to talks with Iran after Tehran asked to continue negotiations, while stressing ⁠that ​the June ceasefire between the two nations was over.

"The Islamic Republic of Iran has asked us to ​continue 'talks.' We ​have agreed to ⁠do so, but the United States has stated to them, ‌in no uncertain terms, that the Cease Fire is OVER!" Trump wrote in a post on Truth Social.

The U.S. and Iran traded strikes this week, with ⁠the ⁠Iranian armed forces launching attacks on U.S. military infrastructure in Gulf ⁠states ‌on Thursday following U.S. ​strikes on Iran's southern coastal ‌and eastern provinces.

The two nations reached an interim deal ‌last month ​to ​end a four ​month conflict that has throttle worldwide energy supplies.

Trump's ​inability to end the ⁠war has frustrated the president, whose Republican Party faces midterm elections later this ‌year ⁠amid high gas prices and voter discontent. Reuters

Countries should reject efforts by Iran to impose sovereignty over the Strait of Hormuz and Tehran's "unilateral decision" to create a body to control traffic through the waterway, the U.N. shipping agency's governing council agreed on Friday.

The U.S. and Iran exchanged ⁠hostilities ​this week, including U.S. military airstrikes, prompted by attacks on ships that Washington said Tehran carried out.

The attacks renewed concerns about the recovery of global oil supplies and shipping, and highlighted the fragility of an interim truce to end the more than four-month conflict while the U.S. ​and ​Iran hammer out a lasting agreement.

The U.N.'s London-based ⁠International Maritime Organization (IMO) is responsible for regulating the safety and security of international shipping and preventing pollution, and comprises 176 member states.

Protection of ‌vital shipping lanes was discussed at a session this week of its 40-member governing council. Gulf countries, the United States and Iran clashed over the future of the strait. Reuters

Iran has warned that any attack on its infrastructure would be met with retaliation, declaring that Israel "will not be spared" in any response, according to Iranian state media.

Mohammad Bagher Zolghadr, secretary of Iran's Supreme National Security Council, issued the warning on Friday as tensions with the United States and Israel remained elevated following recent military exchanges, the Al Jazeera reported.

Meanwhile, diplomatic efforts to prevent a wider conflict are continuing.

The New York Times reported that Qatar has been mediating between Washington and Tehran in an effort to keep communication channels open and reduce the risk of further escalation.

Israeli forces detained Sheikh Mohammad Hussein, the Grand Mufti of Jerusalem and Palestine, shortly after Friday prayers at the Al-Aqsa Mosque compound, the Al Jazeera reported citing Palestinian news agency Wafa.

The report, citing local sources, said Israeli authorities did not immediately comment on the detention. The reason for Hussein's arrest and his whereabouts were not immediately clear, Wafa reported.

Gold edged lower on Friday and was set for a weekly loss, as rising crude oil prices and escalating U.S.-Iran tensions fed concerns that the Federal Reserve may keep monetary policy tight for longer.

Spot gold fell 0.4% to $4,105.97 per ounce ⁠by ​1106 GMT, leaving it down about 1.6% for the week. U.S. gold futures for August delivery slipped 0.6% to $4,114.80 per ounce.

"Spot prices may once again test the $4,000 per-ounce level for psychological support should tensions escalate further and oil prices ​extend ​their rebound," said Han Tan, chief market analyst ⁠at Bybit.

Oil was headed for a weekly gain after Iranian forces launched strikes against U.S. military infrastructure in Gulf states ‌on Thursday, a day after Washington targeted Iran's southern coastal and eastern regions.

Higher energy prices can lift inflation, which may push central banks to raise interest rates. That tends to weigh on gold because the metal pays no yield.

Markets are pricing in a 58% chance of a September rate hike, according to CME's FedWatch tool. Reuters

A recent escalation of hostilities between the U.S. and Iran could upend the International Energy Agency's forecast of a significant oil market surplus next year, it said on Friday, as global supply jumped in June when the Strait of Hormuz reopened but still lagged pre-war levels.

Global oil markets received some respite ⁠last ​month as a peace agreement between the U.S. and Iran facilitated the opening of the Strait, the effective closure of which had taken out as much as 14 million barrels per ​day of ​crude flows during the peak of ⁠the largest oil supply crisis in history.

The IEA said global oil supply rose by 4.1 ‌million bpd in June, but remained 9.4 million bpd below pre-war levels.

The agency predicts supply will expand by 7.5 million bpd next year after a 3.7 million bpd contraction this year, but that is contingent on improved Hormuz transits.

"An escalation in hostilities on 7-8 July, ⁠however, clouds the outlook ⁠and could upend the forecast that sees the market flipping to a surplus next year," ⁠it ‌said, adding that a lasting peace agreement is ​a "must" for oil markets to normalise. Reuters

European shares were little changed on Friday as losses in technology stocks offset broader gains, while investors assessed renewed Middle East tensions that put the benchmark on track ⁠for a ​weekly decline.

The pan-European STOXX 600 edged 0.1% lower to 640.28 points by 0849 GMT and was on track to snap a four-week winning streak.

Technology stocks weakened this week on concerns their high valuations may be hard to sustain after a sharp rally, while renewed Middle East tensions after ​U.S. ​President Donald Trump said the interim deal with Iran was ⁠over further weighed on risk appetite.

The technology sector was off 1.3% on Friday, as investors continued to book profits ahead of South Korean chipmaker SK ‌Hynix's U.S. debut, following a $26.5 billion share sale.

Soitec dropped 3.3%, BE Semiconductor fell 1.6% and ASML 2.3%.

"The large swings we're seeing in technology stocks... suggest investors remain under stress amid elevated valuations," said said Ipek Ozkardeskaya, senior market analyst, Swissquote Bank. Reuters