Stock markets surged and oil prices fell after President Donald Trump announced on Monday that the United States would delay further strikes on Iran’s energy infrastructure pending the outcome of negotiations, CNN reports.
Brent crude fell 10.1% to $100.87 per barrel, briefly dropping as low as $96 per barrel. U.S. crude declined 9.5% to $88.90 per barrel.
Futures contracts for stocks jumped immediately following Trump’s announcement of the military pause, while oil prices fell sharply. However, markets later pared some gains as the Israel Defense Forces continued strikes near Tehran, and it remained unclear whether Iran agreed with Trump’s version of events.
European equities rose, reversing earlier losses: the Stoxx 600 benchmark gained 1.1%, while Germany’s DAX index increased 1.8%. Gold prices fell 2%, the U.S. dollar index dropped 0.5%, and Treasury yields declined as investors bought bonds.
U.S. diesel and gasoline futures also fell on Monday, with diesel down 8.5% and gasoline down 9%. Despite Monday’s declines, futures remain up 83% for diesel and 74% for gasoline year-to-date.
Even with the recent drop, oil prices remain roughly one-third higher than before the U.S. and Israel struck Iran on 28 February. U.S. consumers have already felt the impact through higher fuel costs: gasoline prices rose for the 23rd consecutive day on Monday, reaching $3.96 per gallon, the highest level since August 2022, according to AAA data.
