Oil prices slide, global markets rally as Donald Trump delays Iran attack

Washington: Oil prices fell sharply and global markets rallied after President Donald Trump announced a five-day pause on planned U.S. strikes targeting Iranian energy infrastructure, raising hopes of a diplomatic breakthrough in the ongoing conflict.

In a post on Truth Social, Trump said the United States would delay attacks following what he described as "very good and productive conversations" with Tehran aimed at ending the three-week-long war. He added that the pause would remain subject to the success of ongoing meetings and discussions, signalling a possible opening for diplomacy.

The development marked the first public acknowledgement of high-level talks since U.S. and Israeli forces began strikes on Iran in late February, reportedly targeting military and leadership sites.

Financial markets responded swiftly. U.S. stock futures rose nearly 2 per cent, reversing earlier losses. Brent crude, the global oil benchmark, dropped below $100 per barrel after previously surging above $114 during the conflict. European markets recovered from early losses, and cryptocurrencies also gained as investor confidence improved.

Analysts said easing tensions could help stabilise energy supplies, particularly through the Strait of Hormuz, a critical route for global oil shipments. However, uncertainty persists. Iranian state-linked media portrayed Trump's move as a retreat, while some reports suggested there had been no direct or mediated talks prior to the announcement.

The conflict has already disrupted global energy infrastructure. Iranian missile strikes reportedly damaged key facilities, including a gas-to-liquids plant in Qatar, forcing partial shutdowns. Rising fuel prices have begun affecting economies worldwide, with U.S. diesel prices climbing over 40 per cent in a month, fuelling inflation and supply chain concerns.

Despite the market rebound, investors remain cautious amid volatility and expectations of potential interest rate hikes. (IANS)

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