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Oil Prices Fall and Stock Markets Rise After Trump’s Announcement; Iran Denies Claim
Author
NEPSETRADING
Kathmandu: Following U.S. President Donald Trump’s announcement to postpone attacks on Iranian power plants for a few days, global oil prices plummeted, while European and American stock markets rose. Trump posted on his social media platform “Truth Social” that weekend talks between the U.S. and Iran aimed at a comprehensive resolution of the Middle East conflict were deep, detailed, and constructive, prompting him to direct the military to delay attacks on Iranian energy infrastructure for five days.However, Iran has completely denied Trump’s claim. Iranian Parliament Speaker Mohammad Bagher Ghalibaf called the report false, stating it was spread to manipulate financial and oil markets and escape the entanglement of the U.S. and Israel. Earlier, Trump had threatened to destroy Iranian power plants within 48 hours if the Hormuz Strait remained closed, heightening concerns of a prolonged conflict and global market volatility.On the oil front, international crude oil prices touched $113 per barrel on Monday but quickly dropped to $96 per barrel following Trump’s statement. Analysts note that prices remaining above $100 will continue to burden consumers and businesses. European and U.S. stock indices closed in positive territory, while Asian markets, particularly Japan and South Korea, saw significant fluctuations due to their dependency on oil via the Hormuz Strait.Fatih Birol, head of the International Energy Agency, compared this crisis to the 1970s oil shocks and the post-2022 Russia–Ukraine energy crisis, warning global policymakers of prolonged economic implications. UK Prime Minister Sir Keir Starmer convened a high-level emergency meeting to discuss energy security, supply chain resilience, and the conflict’s impact on public costs.Investment expert Susanah Stritter emphasized that Trump’s statements have destabilized markets. Even if hostilities temporarily cease, supply disruptions and infrastructure damage are expected to reduce Middle East oil exports significantly, and the economic impact will be felt worldwide for an extended period.
