Trump Withdraws 48-Hour Iran Ultimatum as US Seeks End to Iran War

US President Donald Trump dramatically withdrew his 48-hour ultimatum to Iran on Monday, announcing the postponement of attacks on Iranian power plants and energy infrastructure for five days.

“Stocks rally and oil sinks after Trump hints at a possible end to war, even as Iran denies talks Stocks rally and oil sinks after Trump hints at a possible end to war, even as Iran denies talks NEW YORK (AP) — A cautious relief swept through financial markets Monday after President Donald Trump said the United States has talked with Iran about a possible end to their war”

AP News

This development triggered immediate relief across financial markets as stock prices surged and oil prices plummeted following days of market volatility driven by the escalating conflict.

AP News

The announcement came after Trump had previously threatened to 'obliterate' Iran's power plants if Tehran did not reopen the vital Strait of Hormuz waterway within 48 hours.

This threat had sent oil prices soaring above $120 per barrel and caused significant market turbulence.

Trump claimed the US had engaged in 'productive conversations' with Tehran about ending their ongoing war, though these claims were immediately disputed by Iranian officials.

In a significant policy reversal, Trump announced he had instructed the US Department of War to postpone 'any and all military strikes against Iranian power plants and energy infrastructure' for a five-day period.

The postponement was made 'subject to the success of the ongoing meetings and discussions.'

BBC

Trump posted on social media that the US and Iran had held 'very good and productive conversations the last two days regarding a complete and total resolution of our hostilities in the Middle East.'

He added that talks would continue 'throughout the week.'

This dramatic reversal came just two days after Trump had issued his 48-hour deadline for Iran to reopen the Strait of Hormuz.

The Strait of Hormuz is a critical waterway through which a fifth of global oil supply flows.

Tehran had effectively blockaded the waterway since the start of US-Israeli attacks on the country.

Iran immediately rejected Trump's claims of diplomatic engagement, with the Iranian foreign ministry dismissing any dialogue with Washington as reported by state-affiliated media outlets.

“Oil prices slid Monday after President Donald Trump suggested that ongoing talks between the United States and Iran could end the war”

CNN

Iranian parliament speaker Mohammad Bagher Qalibaf specifically accused Trump of using 'fakenews is used to manipulate the financial and oil markets' in a posting on X.

Iran's Islamic Revolutionary Guard Corps (IRGC) issued a stark warning that 'If you strike electricity, we will strike electricity.'

The IRGC further stated that Israeli energy and communications infrastructure and power plants of countries in the region that host US military bases would also be targeted if any attacks occurred.

Iran's semi-official Fars and Tasnim news agencies portrayed the American president as backing down from his earlier aggressive stance.

Parliamentary speaker Mohammed Baqer Qalibaf warned that if Trump made good on his threat, critical infrastructure and oil facilities in the Middle East would be considered 'legitimate targets' and would be destroyed.

Financial markets reacted cautiously but positively to Trump's announcement, with major stock indexes around the world rising sharply while oil prices experienced significant declines.

On Wall Street, the S&P 500 climbed 1.1% for its best day since the war began.

Euronews

The Dow Jones Industrial Average surged by more than 2.1%, and the Nasdaq composite traded 2.2% higher at around 15:00 CET.

European stock indexes also rebounded strongly, with the DAX in Frankfurt jumping by more than 2.4%, the FTSE in London rising by 0.7%, and the CAC 40 in Paris trading nearly 1.7% higher.

In the oil markets, Brent crude fell 10.9% to settle at $99.94, down from nearly $120 at one point last week.

U.S. crude fell 10.3% to settle at $88.13.

However, the market movements were tentative, with the Dow Jones Industrial Average experiencing significant intraday volatility.

The market movements reflected continued uncertainty about the diplomatic developments.

The ongoing conflict has created the largest supply disruption in the history of the global oil market.

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Ukrainian National News (UNN)

The International Energy Agency reported that the reduction of global oil supply from the closure of the Strait of Hormuz was larger than the loss caused by the oil shocks of the 1970s.

Ukrainian National News (UNN)

Tehran has been effectively blockading the vital waterway, through which a fifth of global oil supply flows, since the start of US-Israeli attacks on Iran.

The closure has had severe economic implications, with crude prices remaining more than a third higher than they were before the United States and Israel attacked Iran on February 28.

Turkey and Egypt emerged as potential mediators, with both countries reporting they had spoken to the warring parties.

This marked the first sign of coordinated diplomatic efforts to resolve the crisis.

Despite the temporary market relief from Trump's announcement, the underlying tensions and the strategic importance of the Strait of Hormuz continue to pose significant risks to global energy markets and economic stability.