World shares are mixed and oil prices climb after CNN report that Israel may plan to attack Iran

World shares were mixed on Wednesday, while oil prices jumped more than 1% following a CNN report suggesting Israel may be planning an attack on Iranian nuclear facilities.

A CNN report cited unnamed intelligence officials claiming Israel may be preparing for an attack on Iranian nuclear sites. Oil prices tend to rise during conflicts that could disrupt supplies, and they surged early on Wednesday before shedding some of those gains by midday.

The US benchmark crude oil gained 93 cents to $62.96 per barrel, while Brent crude, the international standard, rose 90 cents to $66.27 per barrel.

In discussions on the nuclear issue, Iranian officials have warned they could pursue nuclear weapons with their stockpile of uranium enriched to near weapons-grade levels. US President Donald Trump has repeatedly threatened to launch airstrikes targeting Iran’s nuclear programme if a deal is not reached.

In early European trading, Germany’s DAX fell 0.3% to 23,967.81, while the CAC 40 in Paris declined 0.7% to 7,891.05. Britain’s FTSE 100 was little changed at 8,780.46.

The futures for the S&P 500 and the Dow Jones Industrial Average were down 0.6%.

In Asia, Tokyo’s benchmark Nikkei 225 fell 0.6% to 37,298.98. Gains have been limited by ongoing concerns over the higher tariffs Trump has imposed on many of the US’s trading partners since taking office. Earlier this week, Japanese officials said they were insisting that all of his tariffs on imports from Japan be removed as part of talks with Washington.

Japan’s exports have slowed due to the tariffs, the government reported on Wednesday. Exports to the US, Japan’s largest single trading partner, fell almost 2% year-on-year in April, while the annual growth rate of its global exports slowed to 2% from 4% in March, preliminary customs data showed.

In a development that further weakened Prime Minister Shigeru Ishiba’s struggling administration, Agriculture Minister Taku Eto resigned after facing backlash over comments in which he said he did not have to buy rice because he received it for free, at a time when supply shortages have driven staple grain prices sharply higher.

In Hong Kong, the Hang Seng picked up 0.6% to 23,827.78, while the Shanghai Composite index edged 0.2% higher to 3,387.57.

Australia’s S&P/ASX 200 rose 0.5% to 8,386.00, while South Korea’s Kospi climbed 0.9% to 2,625.58.

Taiwan’s Taiex advanced 1.3%, and India’s Sensex gained 0.5%.

On Tuesday, the S&P 500 lost 0.4% for its first decline in seven days. The Dow fell 0.3%, and the Nasdaq composite dropped 0.4%.

Treasury yields and the value of the US dollar remained relatively stable following a brief shock on Monday morning after Moody’s Ratings said the US government no longer merits a top-tier credit rating due to concerns over its spiralling debt.

US government debt could grow even further as Washington debates additional tax cuts.

Shares of companies in the travel industry led declines amid doubts over how much US households will be able to spend on summer holidays. Airbnb dropped 3.3%, Norwegian Cruise Line fell 3.9%, and United Airlines lost 2.9%.

Home Depot slipped 0.6% after reporting first-quarter profits that came up just short of analysts’ expectations, although its revenue exceeded forecasts. The home improvement retailer also said it is sticking to its profit and sales growth forecasts for the full year.

Target and Home Depot’s rival Lowe’s were set to report their latest results later on Wednesday.

An increasing number of companies have recently said that tariffs and economic uncertainty are making it difficult to predict the year ahead.

Trump has delayed or reversed many of the steep tariffs he had imposed as part of efforts to push companies to relocate manufacturing to the US. Investors remain hopeful that Trump will eventually reduce his tariffs after securing trade agreements with other countries, but this is not guaranteed.

In currency markets, the US dollar fell to 144.10 Japanese yen from 144.51 yen. The euro rose to $1.1327 from $1.1284.

By RSS/AP