Global markets moved sharply after Donald Trump announced a pause in strikes on Iranian energy infrastructure, pointing to progress in negotiations with Iran.
Oil prices tumbled on the news, wiping out earlier gains. Brent crude fell 6.7 per cent to $104.70 per barrel after initially rising, while West Texas Intermediate dropped 6.9 per cent to $91.41, having earlier climbed above $100.
The reversal followed Trump’s indication of diplomatic momentum, stating that the United States and Iran had held “very good and productive conversations” over the past two days aimed at a full resolution of tensions in the Middle East.
European stock markets also rebounded after earlier losses sparked by rising tensions around the Strait of Hormuz. Frankfurt’s index climbed 1.5 per cent and Paris rose 1 per cent, recovering from declines of about 2.5 per cent earlier in the session.
In contrast, London’s FTSE 100 remained unchanged, held back by declines in major energy stocks. The episode underscores how sensitive global markets continue to be to geopolitical developments in the Middle East, especially those affecting oil supply routes and energy infrastructure.
