US President Donald Trump has announced “very good and productive” talks with Iran, raising hopes of a potential de-escalation in the Middle East conflict.
Following discussions over the past two days, Trump confirmed that the US would delay potential strikes on Iranian energy infrastructure, easing immediate fears of further escalation.
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What Happened
• Trump described talks with Iran as “in-depth, detailed and constructive”
• The US has postponed planned attacks on Iranian energy sites by five days
• Previous threats included strikes if Iran did not reopen the Strait of Hormuz
• Iran had warned it would retaliate by targeting regional energy infrastructure
• No official response yet from the Iranian government
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Market Reaction
The announcement triggered a sharp shift across global markets:
• Oil prices fell sharply
• Brent crude dropped up to 10%, now around $100–$103 per barrel
• Stocks rebounded strongly
• European markets (Stoxx 600) rose ~1.4%
• US futures pointed to gains of 2%+
• Volatility declined
• The VIX (“fear gauge”) dropped significantly
• Bonds rallied
• UK 10-year gilt yields fell to ~4.91%
• Italian bond yields also moved lower
• Gas prices dropped
• European gas fell ~9%, though still elevated vs pre-war levels
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Key Uncertainties
Despite the positive reaction, major risks remain:
• The Strait of Hormuz remains closed
• Existing damage to energy infrastructure is unresolved
• Uncertainty over whether further military action could still occur
• Markets remain cautious, with oil still trading at elevated levels
