Oil prices tumble, global stocks rally as Trump pauses Iran strikes

Oil prices dropped sharply moments after US President Donald Trump announced a five-day postponement of strikes on Iranian power plants and energy infrastructure on Monday (March 23). Brent crude fell over 15 per cent during the session, dropping to $96 per barrel and sliding below $100 for the first time since March 11, while the US benchmark West Texas Intermediate (WTI) fell 13.5 per cent, reaching a session low of $80.28.

However, prices later rebounded, with Brent rising to $104 per barrel and WTI climbing to $90.55.

US stock futures surged on the news. The S&P 500 jumped 1.4%, while Dow Jones futures rose over 800 points (1.9%) before the opening bell, clawing back some of the losses sustained since the war began on February 28.

European bourses staged a dramatic recovery. The FTSE 100 (London), DAX (Frankfurt), and CAC 40 (Paris) all swung from nearly 2% down in morning trading to positive territory within minutes of the Truth Social post. The relief came too late for most Asian markets, which had already closed with heavy losses.

Earlier in the day, Trump announced in a social media post a five-day postponement of all planned military strikes against Iranian power plants and energy infrastructure.

Notably, the US President underlined that the instruction to the Department of War is contingent upon the continued success of these detailed and constructive meetings, which are scheduled to continue throughout the week.

The US President has come under intense domestic and international pressure due to rising energy prices caused by Iran’s closure of the Strait of Hormuz, through which around 20 per cent of global oil transits. Crude oil has been trading above $100 a barrel since the start of the conflict.

This relief in markets comes after a period of volatility driven by Iran’s effective closure of the Strait of Hormuz. Crude oil had remained above $100 a barrel since the conflict began.

Also Read: Trump pauses all military strikes against Iranian energy sites for five days

Confusing messaging from Trump also added to market volatility, as he kept the US stance on the Strait of Hormuz unclear. Earlier, he had called for multilateral naval support from European allies to force open the vital waterway. However, after being snubbed by partners, he said Washington was not concerned, as it does not depend on the strait for its energy needs. On Saturday, he again shifted his position by issuing a deadline to Iran.

The pause comes after 24 days of intense fighting, which began on February 28 following a joint US-Israeli bombing campaign that targeted top Iranian leadership, including the killing of Supreme Leader Ayatollah Ali Khamenei and senior security chief Ali Larijani, along with several high-ranking military commanders.

Despite the US and Israel targeting its leadership and critical infrastructure, Iran remains defiant. The country has adopted a tit-for-tat strategy, attacking oil and energy facilities across Gulf nations and surprising the US by targeting the Diego Garcia military base, around 4,000 km from Iran. This demonstrated Tehran’s missile capabilities, which the US had previously claimed were significantly reduced in its strikes.

(Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.)