Morning brief: Oil slips, Nikkei tumbles, BoE outlook shifts

The global markets looked edgy on Friday as investors weighed fresh signs of stress across commodities, equities, and monetary policy.

Oil eased on hopes of additional Iranian supply, but fears around Middle East disruption kept the outlook fragile.

In Asia, Japan’s Nikkei slid deeper into correction territory, while in the US, the FCC signed off on a blockbuster TV deal.

Adding to the cautious tone, Goldman Sachs now sees the Bank of England holding rates higher for longer than expected.

Oil slips on Iran supply hopes

Oil prices slipped on Friday after Treasury Secretary Scott Bessent said Washington may soon allow roughly 140 million barrels of sanctioned Iranian crude already stored on tankers to enter the market.

The move is aimed at easing the supply shock and cooling prices.

Brent fell about 2% to near $106 a barrel, while US crude dropped around 1.6% to roughly $94.

Bessent said the additional barrels could help contain prices for the next 10 to 14 days as the Strait of Hormuz disruption continues to squeeze flows.

Citi warned Brent and WTI could still climb toward $120 in the next one to three months, and as high as $150 if outages worsen.

Nikkei 225 crashes over 3%

Japan’s Nikkei 225 slid more than 3% on Friday, pushing the benchmark into correction territory after falling about 10% from its peak earlier this year.

The selloff tracked weakness on Wall Street and deepened as investors worried that the Iran conflict could keep energy prices elevated.

The Bank of Japan added to the cautious mood after flagging rising energy risks.

While oil prices eased later in the session, the relief was limited for Japan, which remains highly exposed to imported energy costs.

FCC clears Nexstar-Tegna deal

The Federal Communications Commission has approved Nexstar Media Group’s $3.54 billion purchase of Tegna’s local TV stations.

The order clears one of the biggest remaining hurdles for a deal that will create the largest broadcast station group in the US.

Nexstar said it closed the acquisition soon after winning clearance from both the FCC and the Justice Department.

The combined company is expected to reach about 80% of U.S. TV households, after the FCC agreed to waive its 39% national broadcast ownership cap.

The decision came despite legal challenges from eight Democratic-led states and a separate lawsuit from DirecTV.

The lawsuits argue the merger would give Nexstar too much market power.

Goldman sees BoE holding longer

Goldman Sachs has pushed back its call for Bank of England rate cuts to 2027, arguing policymakers are likely to stay on hold longer as inflation risks intensify.

The shift came after the BoE left its benchmark Bank Rate unchanged at 3.75% and warned that inflation could rise to around 3.5% over the next two quarters.

Goldman had previously expected quarter-point cuts to begin in July, but now sees a slower easing path starting next year.

The bank also flagged a meaningful risk of another hike if global energy prices keep climbing.