WASHINGTON – International markets reacted sharply to US President Donald Trump’s sudden reversal on the conflict with Iran on Monday, marking one of his most dramatic policy pivots yet.
Since returning to office last year, Trump has embraced a highly instinct-driven style of governance, frequently issuing contradictory statements on goals, timelines, and methods. In mid-March, he even stated the war would end when he “felt it in his bones,” reflecting the unpredictable nature of his approach.
Experts note a familiar pattern: Trump issues commercial, diplomatic, or military threats that unsettle global observers, then abruptly changes course, claiming concessions and promising resolutions that are rarely detailed. This approach often causes rapid market swings.
On Monday, news that the United States had engaged in talks with Iran triggered a sharp market response. Oil prices plunged, with North Sea Brent crude dropping over 14 percent and West Texas Intermediate falling nearly 10 percent. US equities surged, with the Dow Jones Industrial Average rising by 700 points.
Just days earlier, Trump had issued Iran a 48-hour ultimatum to reopen the Strait of Hormuz under threat of major strikes against the country’s power infrastructure. By Monday, he extended the timeline to five days, citing “very productive” discussions with “highly respected” Iranian officials, though he did not provide specific names.
Despite the announcement, Iranian authorities denied any ongoing negotiations, tempering some of the market optimism generated by the US statement.
The episode highlights both the volatility created by Trump’s unpredictable decision-making and the delicate balance facing global markets amid ongoing tensions in the Middle East.
