Global stock markets rebounded and oil prices fell sharply on Monday after US President Donald Trump postponed planned military strikes on Iranian power plants for five days. The decision followed what Trump described as 'very good and productive' talks between the US and Iran over the weekend.
European stock markets, which had opened lower, mostly turned positive. France's CAC 40 rose 0.8%, Spain's Ibex gained 1%, and Germany's DAX climbed 1.2%. The UK's FTSE 100, after falling nearly 1.5% in early trading, closed down just 0.2%. US markets were up more than 1% in afternoon trading.
Oil prices dropped sharply, with Brent crude falling 10% to $101 a barrel. UK month-ahead gas prices fell 6% to 142p a therm. The decline came after Trump had threatened over the weekend to strike Iranian infrastructure unless Iran reopened the Strait of Hormuz, a critical waterway for global oil supplies.
In a post on his Truth Social platform, Trump said he had instructed the Department of War to postpone any military strikes for five days, subject to the success of ongoing meetings. The US dollar slipped 0.4% against a basket of currencies, while gold prices fell 2.5% to $4,388 an ounce as inflation concerns persisted.
Shares in oil companies BP and Shell fell more than 3% on the news. Meanwhile, UK Prime Minister Keir Starmer was set to hold an emergency Cobra meeting with top ministers and Bank of England Governor Andrew Bailey to discuss the economic impact of the Iran crisis, including energy security and potential support for households facing rising energy bills.
