Oil Prices Slide and Global Stocks Rise After Trump Signals War with Iran May End Soon
By Sabeeh Zanair :
Global oil prices dropped sharply and stock markets rebounded on Tuesday after Donald Trump suggested that the ongoing conflict involving the United States, Israel and Iran could end sooner than initially expected.
Markets had been volatile amid fears that the fighting in the oil-rich Middle East would drag on, potentially disrupting global energy supplies. However, investor sentiment improved after Mr Trump said the military campaign was progressing faster than anticipated.
Speaking to CBS News, the US president said the conflict appeared close to conclusion, claiming Iran’s military capabilities had been severely weakened.
“I think the war is pretty much complete,” he said, adding that Iran had lost key military assets including naval and air capabilities.
Mr Trump said the United States was “far ahead” of the initial timeline of four to five weeks he had outlined earlier for the conflict.
Threat over Strait of Hormuz
Despite his optimistic assessment, the US president warned that Washington would respond with overwhelming force if Iran attempted to block oil shipments through the Strait of Hormuz, a critical passage through which roughly one-fifth of the world’s oil supply moves.
In comments later repeated on social media, Mr Trump said any disruption to oil flows in the strait would trigger a much stronger US response.
“If Iran stops the flow of oil through the Strait of Hormuz, they will be hit far harder than before,” he said.
Iran’s Islamic Revolutionary Guard Corps responded by saying it would prevent oil exports from the region if attacks by the United States and Israel continued.
“We will determine how the war ends,” a spokesperson said, according to Iranian state media.
Markets swing amid uncertainty
Financial markets have reacted sharply to the escalating conflict. Oil prices surged dramatically on Monday amid fears that the appointment of Mojtaba Khamenei as Iran’s new Supreme Leader would signal a prolonged confrontation.
However, prices reversed course on Tuesday after Mr Trump suggested a quicker end to the conflict and hinted at possible relief from sanctions on Russian energy supplies following talks with Vladimir Putin.
Benchmark Brent Crude futures fell more than 10% after surging by nearly 30% a day earlier to their highest level since 2022. Global equity markets also recovered after earlier losses.
US officials are reportedly considering several options to stabilise energy markets, including easing restrictions on Russian oil exports, releasing crude from strategic reserves, or limiting US oil exports.
Rising toll and widening conflict
According to Iran’s ambassador to the United Nations, at least 1,332 Iranian civilians have been killed and thousands more injured since US and Israeli strikes began across Iran in late February.
The fighting has also affected infrastructure. Thick smoke was seen over Tehran after an oil refinery was hit, raising concerns about pollution and potential contamination risks.
The head of the World Health Organization, Tedros Adhanom Ghebreyesus, warned that fires at energy facilities could threaten food supplies, water quality and air safety.
The conflict has also spread beyond Iran. Turkey reported that its NATO air defences intercepted a ballistic missile fired from Iran that briefly entered Turkish airspace.
Meanwhile, Israel said it had launched new strikes in central Iran and in Beirut, following cross-border attacks from the Iran-backed group Hezbollah.
Political pressure in the US
The conflict is also shaping political debate in the United States ahead of the November midterm elections.
A recent Reuters and Ipsos poll found that 67% of Americans expect fuel prices to rise in the coming months, while only 29% expressed support for the war.
Rising petrol costs remain a major concern for voters, adding pressure on the administration as energy markets continue to react to developments in the Middle East.
About Author
