Oil prices fell sharply to as low as $12 a barrel after the United States decided to temporarily suspend attacks on Iran's energy infrastructure. The decision comes in the context of negotiations described as “deep and constructive” between Washington and Tehran.
European stock markets rise after the temporary ceasefire announced by Trump in Iran PHOTO: Shutterstock
The United States and Iran have held, in recent days, intense discussions regarding a possible de-escalation of the conflict. Following these negotiations, former US President Donald Trump announced, on his Truth Social social network, a temporary suspension of attacks on Iranian energy infrastructure.
The measure covers a period of five days, during which there will be no strikes on power plants and other targets in the energy sector. The decision is presented as an opening gesture, intended to allow the continuation of the diplomatic dialogue.
“Based on the tone of these deep, detailed and constructive discussions, which will continue throughout the week, I have instructed the military to delay any attacks against Iranian power plants and energy infrastructure for a period of five daysTrump said.
In essence, this pause amounts to a limited truce in the energy sector, which analysts see as a possible first step towards a broader agreement between the two sides.
Immediate reaction on the oil market
The oil market reacted quickly to these developments. Immediately after the information about the negotiations and the suspension of the attacks appeared, the oil price dropped from $109 to $97 per barrel, according to Dialog.ua. Later, the quotations partially recovered, reaching about 101 dollars per barrel.
The oil price registers a correction PHOTO: Dianlog.ua
In parallel, the European stock markets returned to growth after the decreases registered at the beginning of the session, stimulated by Trump's announcement regarding the postponement of the strikes on Iran. The fluctuations underscore the market's high sensitivity to any signal of a possible de-escalation of tensions in the Middle East, a key region for global oil supplies.
