Global markets saw sharp movement after US President Donald Trump said that talks had taken place with Iran to end the ongoing conflict in West Asia. His statement led to a drop in oil prices and a recovery in stock markets across Europe and the US.

Brent crude oil prices, which had earlier surged amid fears of this long conflict, fell sharply after his comments.

At one point, prices dropped from around $113 per barrel to $96, before slightly recovering to about $103.

Markets react to Trump’s remarks

Stock markets responded positively to the news. London’s FTSE 100 rose by 0.3% after earlier losses, while Germany’s DAX jumped 1.7% and France’s CAC gained 1.2%. In the US, both the S&P 500 and Dow Jones opened nearly 2% higher.

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However, Asian markets, which had closed before Trump’s latest statement, saw heavy losses. Japan’s Nikkei fell 3.5%, while South Korea’s Kospi dropped 6.5%, mainly due to concerns over energy supply disruptions.

Trump said on Truth Social that the US and Iran had “VERY GOOD AND PRODUCTIVE” talks and were working towards a “COMPLETE AND TOTAL RESOLUTION.” He also announced a five-day pause on planned strikes against Iranian energy infrastructure.

He added he had told the Department of War to postpone any military strikes "AGAINST IRANIAN POWER PLANTS AND ENERGY INFRASTRUCTURE FOR A FIVE DAY PERIOD, SUBJECT TO THE SUCCESS OF THE ONGOING MEETINGS AND DISCUSSIONS".

But Iran denied any such talks had taken place, rejecting Trump’s claim.

Oil concerns and global impact

The conflict began on February 28. It has disrupted global oil supply, especially through the Strait of Hormuz, a main route for nearly 20% of the world’s oil and gas.

Fears of supply disruption had pushed oil prices above $100, raising concerns for countries like Japan and South Korea that depend heavily on imports. Experts warned that the situation remains uncertain. Analysts said markets are reacting quickly to every update, but relying on political statements remains risky.

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The head of the International Energy Agency, Fatih Birol, warned that the world could face one of the worst energy crises in decades, comparing the current situation to the oil shocks of the 1970s and the impact of Russia’s invasion of Ukraine.

The crisis has already led to higher energy costs, affecting both businesses and consumers worldwide.

{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}