Global markets swung sharply on Monday after US President Donald Trump announced a halt to planned strikes on Iranian energy infrastructure, citing “very good” talks with Tehran. The move eased fears of immediate escalation and triggered a strong reaction across oil and equity markets.
Crude prices plunged after earlier gains, with international benchmark Brent crude dropping as much as 14 percent before trimming losses. By 1145 GMT, Brent was down 6.7 percent at $104.70 per barrel. Similarly, West Texas Intermediate fell 6.9 percent to $91.41 per barrel after briefly surpassing $100 earlier in the day.
Meanwhile, European stock markets recovered from initial losses sparked by rising tensions in the Middle East. Frankfurt’s main index rebounded by 1.5 percent nearing midday, while Paris gained around one percent. However, London’s FTSE 100 remained flat, weighed down by declines in energy giants such as BP and Shell.
Earlier in the session, markets had come under pressure following an exchange of threats between US and Iranian leaders over the strategically vital Strait of Hormuz. However, Trump’s statement signalling progress in diplomatic efforts reversed sentiment.
In a post on his Truth Social platform, Trump said the United States and Iran had engaged in “very good and productive conversations” over the past two days regarding a complete resolution of hostilities in the Middle East.
Consequently, investors responded positively to the prospect of de-escalation, although analysts cautioned that volatility could persist depending on the outcome of ongoing negotiations.
