Oil Prices Plunge 14% After Trump's Iran Remarks

Oil prices experienced a significant decline, plunging by 14% after U.S. President Donald Trump ordered a halt to strikes on Iranian energy infrastructure, claiming positive discussions with Tehran.

This statement, made on Trump's Truth Social platform, sharply contrasted with his earlier threats. Following this, crude futures saw a recovery, with prices down around 9%.

Giovanni Staunovo, a commodities analyst, noted that clarity was needed regarding negotiations with Iran, which denied any talks with Washington. The International Energy Agency warned of the worst global energy crisis in a decade.

Trump's ultimatum to Iran included a 48-hour deadline to reopen the Strait of Hormuz, a critical passage for global oil flow. Despite the drop in oil prices, concerns about inflation and rising interest rates persisted, affecting various markets.

European stocks initially opened lower but rebounded, with the London FTSE 100 down 0.4%, the Paris CAC 40 down 1.7%, and the Frankfurt DAX down 2.3%.