Oil tumbles as Trump pauses Iran strikes; markets rebound on easing tensions
NEW DELHI, India — Global oil prices plunged Monday after U.S. President Donald Trump announced a temporary halt to planned military strikes on Iran’s energy infrastructure, signaling a potential de-escalation in tensions that had rattled markets.
Brent crude dropped more than 13 percent, falling roughly $17 to a session low near $96 per barrel. U.S. West Texas Intermediate crude also declined sharply, shedding about $13, or 13.5 percent, to $85.28.
The sell-off followed signs of easing geopolitical risk after Trump said he had directed the Department of Defense to postpone airstrikes on Iranian power plants and other energy facilities for five days. The decision came after what he described as “very good and productive conversations” between U.S. and Iranian officials over the past two days.
In a post on Truth Social, Trump said the pause in military action would depend on the progress of ongoing talks aimed at resolving hostilities in the Middle East. He pointed to the “tenor and tone” of discussions as a factor behind the decision, raising hopes of a diplomatic breakthrough.
Markets responded swiftly to the shift. GIFT Nifty futures surged, rising as much as 1,068.5 points, or 4.75 percent, to 23,533.50 from a previous close of 22,465. By late afternoon, futures remained up 853.5 points, or 3.8 percent, at 23,318.50.
Precious metals also rebounded following the announcement. In global markets, spot gold pared earlier losses and was down 2.6 percent after falling as much as 5 percent earlier in the session. On India’s Multi Commodity Exchange, gold prices recovered as well, trimming losses to about 3 percent after earlier declines of nearly 10 percent.
The sharp moves across commodities and equities reflect shifting investor sentiment as fears of supply disruptions in global energy markets begin to ease. (Source: IANS)
