Iran dismisses Trump’s talks claim as bid to cool oil market
Iran on Monday criticised Donald Trump’s latest comments on possible military strikes as part of an effort to bring down energy prices and buy time, with markets responding in a way that appeared to bear out that claim: oil fell sharply and stocks rose.
In a statement, Iran’s foreign ministry dismissed the U.S. president’s remarks as merely “within the framework of efforts to reduce energy prices and gain time to implement his military plans.”
Tehran added that regional countries had made proposals to reduce tensions, but said responsibility lay with Washington because “we are not the party that started this war.”
Hourse before, Trump said on Truth Social that the US. and Iran had held “very good and productive conversations” over the previous two days on a “complete and total resolution” of hostilities in the Middle East.
He said he had instructed the Department of War to postpone “any and all military strikes” on Iranian power plants and energy infrastructure for five days, subject to the success of further talks.
Despite Iran’s sceptical response, markets appeared to treat Trump’s statement as a signal that immediate escalation might be avoided.
Oil prices fell sharply. Brent crude, the global benchmark, dropped to just above $100 a barrel after settling at $112.19 on Friday.
The move reflected investor hopes that a pause in U.S. military action could reduce the risk of a deeper supply shock, even as the Strait of Hormuz remained a central concern for traders.
The waterway normally carries as much as one-fifth of the world’s oil supply, but shipping traffic out of the Gulf has been effectively halted because of the danger of attacks on vessels.
Equity markets also recovered after Trump’s post. The S&P 500 opened nearly 1.5% higher on Monday, reversing a 1.5% fall on Friday. In Europe, the Stoxx 600 rose more than 1% in afternoon trading, while Germany’s DAX jumped nearly 2%. Britain’s FTSE 100 edged higher.
This market rebound came despite continued warnings about the economic risks of the conflict. Fatih Birol, executive director of the International Energy Agency, said on Monday the global economy faced a “major, major threat” from the war, adding that no country would be immune if the crisis worsened.
This story is written and edited by the Global South World team, you can contact us here.
