Stocks rise after Trump calls off strikes on Iran’s energy infrastructure
The global stock markets rebounded on Monday after the United States President Donald Trump announced the postponement of a planned American military attack on Iran’s power and energy infrastructures, citing ongoing negotiations between the two countries.
In a statement on Monday, Mr Trump said he had ordered the Department of War to temporarily suspend the plan to target power and energy installations when a 48-hour ultimatum issued for the Islamic Republic to open the Strait of Hormuz expires on Tuesday, causing stock markets to fall.
He stated that both the United States and Iran had begun talks over the past two days, prompting him to pause for at least five days to allow further negotiations. Reports noted that the discussions were being mediated by Egypt, Pakistan and Turkey.
“I am pleased to report that the United States of America and the country of Iran have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Mr Trump said.
“Based on the tenor and tone of these in-depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions.”
Immediately after Mr Trump’s comments, the Dow Jones Industrial Average jumped 1,117 points, or 2.4 per cent, while the Nasdaq Composite increased by the same percentage. Both markets were down by 9.8 per cent before Monday’s announcement.
The S&P 500, which was off seven per cent, rose by 2.2 per cent. International benchmark Brent fell more than 12 per cent to $98 a barrel in the aftermath of the stand-down order by Mr Trump.
Likewise, the market in Europe also sharply reversed its course. The Stoxx 600 index, which had been more than 1.5 per cent lower earlier, gained around one per cent. Bitcoin rose by four per cent, as did other cryptocurrencies.
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