Brent Drops Below $100 as Trump Signals Iran Talks – US Market Wrap

A possible de-escalation in the Middle East conflict lifted stocks and pushed oil lower after President Donald Trump said he would postpone strikes on Iranian energy infrastructure following what he described as productive talks.

Brent crude plunged more than 14% before paring losses and closing below $100 after Iran denied talks, while the S&P 500 rose about 1%. Bond yields and the dollar fell as traders dialed back hawkish Fed expectations and priced in modest easing.

The reversal followed Trump giving Iran until Monday evening New York time to reopen the Strait of Hormuz, offering a five-day reprieve amid what he described as new talks with Tehran. Trump said he wants “as much oil in the system as possible” and expects prices to “drop like a rock” if a deal is reached.

The shift surprised traders given little prior sign of diplomatic progress. Trump said a “top person” is representing Iran in discussions, though not Supreme Leader Mojtaba Khamenei, and suggested the US and Iran could jointly oversee the Strait, which he said could reopen soon “if it works.”