Trump postpones Iran strikes after 'productive' talks, markets recover

(Sharecast News) - Donald Trump said on Monday that the US was postponing "any and all" military strikes against Iranian energy infrastructure following "very good and productive conversations" about a resolution to the hostilities in the Middle East. Writing on Truth Social, Trump said: "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.

"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."

The FTSE 100 turned higher after his post and by 1130 GMT, was trading up 0.2% at 9,936.09, having fallen sharply earlier in the day. The index has now entered correction territory, down more than 10% from the record high on 27 February, a day before the conflict in the Middle East began.

Meanwhile, the benchmark Stoxx 600 index was 1.7% higher at 583.28, also reversing earlier heavy losses.

Oil prices tumbled after Trump's comments, with Brent crude down 8.5% at $102.71 a barrel and West Texas Intermediate 8.2% lower at $90.16.

Stocks had kicked off the session sharply in the red, with oil up, as investors reacted to developments over the weekend. Iran threatened on Sunday to "irreversibly destroy" energy infrastructure across the Middle East after Donald Trump said the US would "obliterate" the country's power plants if it did not reopen the Strait of Hormuz within 48 hours.

In a Truth Social post late on Saturday night, Trump said the US would destroy Iran's "various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!". The US president's threat came just a day after he said he was considering "winding down" the war.

Iran's Revolutionary Guards threatened to completely close the Strait of Hormuz if Trump follows through on his threat.

The Iranian president's speak, Mohammad Bagher Ghalibaf, said on Sunday: "Immediately after power plants and infrastructure in our country are targeted, vital infrastructure as well as energy and oil infrastructure across the entire region will be considered legitimate targets and will be irreversibly destroyed."

Ghalibaf also said that US-linked financial institutions holding American government bonds would be targeted.