Oil prices dropped sharply when Mr. Trump canceled the ultimatum with Iran

On the morning of March 23, US time, US President Donald Trump announced the cancellation of the “48-hour ultimatum” with Iran. Writing on the social network Truth Social, he said there had been “productive” negotiations over the past two days.

“I have instructed the Department of War to postpone any military strikes against Iran’s power plants and energy infrastructure for a period of five days, depending on the success of ongoing meetings and discussions,” he stated.

Crude oil prices immediately plummeted, with Brent oil at one point falling more than 13%, to below $97 per barrel. Currently this oil is trading around 105 USD. Similarly, WTI oil decreased more than 9%, falling below 90 USD per barrel before returning above this mark.

Other markets also reacted simultaneously. US stock futures such as the Dow Jones Industrial Average increased 1,100 points, or 2.6%. S&P 500 and Nasdaq-100 futures both rose 2.7%.

In Europe, the STOXX Europe 600 index also turned up. This index is currently up 0.7%, after falling more than 2.2% in the first trading session of the day.

The USD plunged, with the US Dollar Index down 0.3%, after previously increasing 0.6%. Euro increased more than 1%, to 1,158 USD, from about 1,487 USD previously.

Gold prices narrowed their decline to just over 2%, trading around 4,395 USD per ounce, after President Trump’s statement. However, precious metals are still maintaining their losing streak for the 9th consecutive session. Last week, gold plunged more than 10% as oil prices soared and central banks maintained a hawkish stance.

According to Chris Beauchamp, market analyst at IG Markets, Mr. Trump’s information is not a complete ceasefire, so we need to wait for further developments. “What happened cannot be reversed, the impact is not yet clearly seen, but it is clear that the market is breathing a sigh of relief,” he commented.

Mr. Trump’s positive negotiation announcement came as the Iran conflict entered its fifth week. Previously, he threatened to attack Iran’s power plants if the Strait of Hormuz was not reopened. The country said it would respond to US infrastructure.

Last week, tensions caused Brent oil prices to sometimes rise above 110 USD per barrel while US crude oil WTI was also approximately 100 USD. Dow Jones and Nasdaq both fell about 2% last week, while the S&P 500 lost 1.5%, recording the first four consecutive weeks of decline since 2023.