Iran attacks halt and wildfires rage across Europe

Hello, this is Leonie Kidd coming to you from London.

There are two major stories this morning.

For markets, efforts by the U.S. and Iran to explore a more diplomatic solution to their tensions is driving oil prices sharply lower and lifting stocks across the globe.

For Europe, the wildfires raging across France and Spain are causing a humanitarian and environmental disaster, with hundreds of thousands evacuated and historic damage to the countryside and farming.

A cessation in attacks between the U.S. and Iran is driving oil prices sharply lower in early trading. Both Brent crude futures and U.S. West Texas Intermediate crude futures are down around 5%.

A senior Iranian official has indicated that Tehran will halt attacks while the U.S. also pauses its strikes, Reuters reported. Washington has not ordered any action against the country since before the weekend.

Over the weekend, U.S. ambassador to the United Nations Mike Waltz told NBC’s Meet the Press that “what the president is doing right now, as we’ve seen all along, is giving some talks some space,” Waltz said. “Talks are ongoing; they’re happening at every level.”

In an unusual twist, Ukraine has struck Iranian vessels in the Caspian Sea, sparking a sharp diplomatic response from Tehran.

Ukraine’s representative in Iran was summoned by the government following the attack. In a post on X, Ukraine’s President Volodymyr Zelenskyy said forces had “achieved very strong results with long‑range strikes in the Caspian Sea – including vessels used in military cargo shipments involving Iran, as well as a warship.”

Iran has a history of sharing weapons and ammunition with Russia, with certain types of drones used in Moscow’s war on Ukraine.

Wildfires are raging across France and Spain, triggering the mass evacuation of over 300,000 people from the worst-impacted regions.

The French region of Gironde has been one of the worst affected, with France’s interior minister Laurent Nuñez describing fires in the country’s south-west as “extremely violent and unpredictable.”

In Spain, the flames have destroyed over 50,000 hectares (123,500 acres) of countryside, making it the biggest wildfire in Spain’s recent history.

Neighbouring countries across Europe have mobilized support, sending teams and planes to assist in tackling the blazes.

Futures across the U.S. and Europe are pointing higher. In Asia, equities are mixed — but one stock is outperforming.

Chinese memory chipmaker CXMT has spiked 500% in a blockbuster debut on the Shanghai market.

The group’s listing on the tech-heavy STAR Market makes it the most valuable China-listed company.

“I have no doubt the company is going to grow to be a global leader. It’s maybe just a question of time that it can be not only a challenger, it can be a global champion in this particular sector,” said Theodore Shou, CEO at Yiyi Capital on CNBC’s “Squawk Box Asia.” 

— Leonie Kidd