Trump-Iran Talks Lift Stocks, Lower Oil Prices

Stock futures rose and oil prices fell Monday after President Donald Trump announced a five-day pause on planned military strikes against Iran, citing “very good and productive” talks between the two nations aimed at de-escalating the ongoing conflict. The announcement came just hours before a 48-hour ultimatum issued by Trump to Tehran over opening the Strait of Hormuz was due to expire.

Trump stated he had instructed the Department of Defense to postpone strikes on Iranian power plants and energy infrastructure. “We were planning tomorrow on shooting down some of their power plants, we’re gonna hold that up, hopefully we won’t have to do it,” he said, adding that at the end of the five-day period, a “very good deal for everybody” could be reached, “as good as if we went all the way and just literally annihilated the place.”

The claim of productive conversations was quickly disputed by the Iranian parliament speaker, who labeled Trump’s assertion as “fake news.” Despite the conflicting reports, the temporary halt in military action provided a brief respite from escalating tensions. The United States and Israel have been engaged in a war with Iran for four weeks, with Iranian government enduring the loss of top political and military leaders and launching retaliatory attacks on Israel and Gulf countries.

The conflict has also seen Iran impose a de facto blockade of the Strait of Hormuz, a critical waterway for global oil supplies, sending oil prices soaring and raising concerns about a potential global recession. Trump’s administration has responded by allowing the sale of sanctioned Russian oil in an attempt to ease the energy crisis and pressure allies to secure the strait, efforts which have so far proven unsuccessful.

European Union chief Ursula von der Leyen indicated that the EU could consider an operation to secure the Strait of Hormuz “when the hostilities end.” Speaking in Canberra, Australia, von der Leyen stated that EU leaders had made this clear.

The shifting messaging from the Trump administration regarding the conflict has drawn scrutiny. On Saturday, Trump had threatened to “obliterate” Iran’s power plants if Tehran did not reopen the Strait of Hormuz within 48 hours, a statement that contrasted with his subsequent announcement of paused strikes and ongoing talks.