LONDON (Web Desk) – Global oil prices fell sharply while stock markets rebounded after former US President Donald Trump said that the United States and Iran had held talks aimed at ending the ongoing conflict in the Middle East.
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Following Trump’s statement on Truth Social, Brent crude prices initially dropped, and major stock markets across Europe and the United States moved higher. Trump claimed that discussions were “very good and productive” and suggested a possible “complete resolution” of hostilities, adding that planned US strikes on Iranian energy infrastructure would be postponed for five days.
However, Iranian state-affiliated media denied any talks, with Iran’s foreign ministry stating that no negotiations had taken place between the two countries. This contradiction added uncertainty to already volatile markets.
Earlier, tensions had pushed oil prices up to $113 per barrel before they fell to around $96 and later recovered to approximately $103. The Strait of Hormuz, a key global oil shipping route, has remained a major concern, as about 20% of the world’s oil and liquefied natural gas typically passes through it.
Stock markets, which had been under pressure, saw a recovery after Trump’s comments. While Asian markets closed earlier with losses, European and US indices rebounded, with gains recorded in major benchmarks such as the FTSE 100, DAX, CAC, S&P 500, and Dow Jones.
Analysts warned that relying on statements alone carries risks, as market sentiment has fluctuated significantly in recent weeks due to conflicting signals about the conflict. Energy experts also cautioned that despite recent declines, oil prices above $100 per barrel would continue to strain global economies.
The ongoing conflict has already disrupted energy supplies, contributing to rising fuel prices and concerns about a broader energy crisis. Experts and officials, including leaders from the International Energy Agency, have warned that the situation could trigger one of the most severe energy disruptions in decades.
In response, governments, including the UK, are focusing on energy security and economic stability, with emergency meetings held to assess the impact on supply chains and the cost of living.
