Oil prices tumbled and stocks rebounded after Donald Trump signalled progress in talks with Iran.
Brent crude slumped 14% to $96 a barrel, having traded as high as $114 earlier in the day, after Trump said the US would delay strikes on Iranian energy infrastructure for at least five days.
US crude prices dropped sharply, hitting their lowest level in over a week as tensions in the Middle East showed signs of easing.
WTI crude fell 9.7% to $88.72 a barrel, after Donald Trump announced a five-day delay to planned strikes on Iran’s energy infrastructure. The move has eased immediate supply concerns, sending oil lower as markets begin to price in the possibility of a diplomatic breakthrough.
The shift in tone lifted equities, with the FTSE 100 rising 0.4%, reversing earlier losses of more than 2% following the weekend’s escalation.
Trump said the US and Iran had held “very good and productive conversations” over the past two days, raising hopes of a potential resolution to the conflict.
He added that military action would be paused while negotiations continue, marking a sharp turnaround from his earlier ultimatum demanding Iran reopen the Strait of Hormuz.
