Oil falls sharply, stocks rise as Trump extends Hormuz ultimatum
Oil prices fell sharply on Monday after US President Donald Trump said he had held productive talks with Iran on resolving the conflict, raising hopes of de-escalation in the Middle East.
Brent crude dropped more than 11% before paring losses to trade about 7-8% lower later in the day, while earlier gains driven by fears of escalation reversed.
Trump said the two sides had held “very good and productive conversations” over the past two days and that further talks would continue through the week.
He added that he had instructed officials to postpone planned US strikes on Iranian energy infrastructure for five days, depending on the outcome of the discussions.
The shift in sentiment lifted global markets. The FTSE 100 rebounded from earlier losses to trade higher, while US futures and Asian markets also moved into positive territory as investors bet on a potential easing of tensions.
