By Westferry Times Business Desk
23 March 2026
Global oil prices dropped sharply while stock markets rebounded after US President Donald Trump suggested progress towards ending the ongoing conflict with Iran.
الأسواق تتنفس الصعداء بعد تصريحات ترامب
Brent crude prices fell from highs of around $113 per barrel to as low as $96, following Trump’s announcement that “constructive” discussions had taken place regarding a potential resolution.
The US president said planned strikes on Iranian power plants would be delayed for five days to allow room for further talks.
However, Iran denied that any negotiations had taken place, accusing the US of spreading misinformation to influence financial markets.
Stock Markets Recover
Markets reacted quickly to the shift in tone:
- S&P 500 rose more than 1.1%
- Dow Jones climbed nearly 1.4%
- Germany’s DAX closed up 1.2%
- France’s CAC 40 gained around 0.9%
- FTSE 100 recovered from earlier losses to finish flat
Asian markets had already closed before Trump’s comments, recording significant losses, including a 3.5% drop in Japan’s Nikkei and a 6.5% fall in South Korea’s Kospi.
Strait of Hormuz Remains Critical
The conflict has heavily impacted the Strait of Hormuz, a key global shipping route responsible for around 20% of the world’s oil and gas supply.
Since late February, disruptions in the region have driven energy prices higher and raised fears of supply shortages.
Energy Crisis Fears Persist
Despite the temporary drop in oil prices, analysts warn that volatility remains high.
The International Energy Agency (IEA) has cautioned that the world could face one of the worst energy crises in decades, comparing the situation to the oil shocks of the 1970s and the fallout from Russia’s 2022 invasion of Ukraine.
Energy costs are still expected to remain elevated, with potential knock-on effects including:
- Rising household energy bills
- Increased business costs
- Pressure on global supply chains
UK Response and Economic Impact
UK Prime Minister Sir Keir Starmer is set to chair an emergency Cobra meeting focused on energy security and economic resilience.
Government borrowing costs had surged to their highest levels since the 2008 financial crisis before easing slightly following Trump’s announcement.
Market Outlook
While markets welcomed signs of de-escalation, uncertainty remains high due to conflicting statements from Washington and Tehran.
Analysts warn that any renewed escalation could quickly reverse the gains seen in both oil and equity markets.
