Global markets reacted sharply after Donald Trump announced a halt to strikes on Iranian energy infrastructure, citing progress in talks with Iran.
Oil prices plunged following the announcement, reversing earlier gains. Brent North Sea crude dropped 6.7 per cent to $104.70 per barrel, after initially rising, while West Texas Intermediate fell 6.9 per cent to $91.41, having earlier surpassed $100.
The shift came after Trump signalled diplomatic progress, writing: “The United States and Iran have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.”
European stock markets also rebounded after earlier losses triggered by escalating tensions over the Strait of Hormuz. Frankfurt’s market rose by 1.5 per cent and Paris gained one per cent, recovering from earlier declines of around 2.5 per cent.
However, London’s FTSE 100 remained flat, weighed down by losses among major energy firms. The developments highlight how sensitive global markets remain to geopolitical tensions in the Middle East, particularly those affecting oil supply routes and energy infrastructure.