Global markets rise, oil falls on Trump Iran war comments

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Global markets rise

Highlights

Stoxx 600 grew by 2.2%, and Asian markets strengthened by about 3.3%.
Brent fell by 9-11% after a recent surge.
Government bond yields sharply dropped amid stock market growth.
Geopolitical risks related to the Strait of Hormuz and potential further counteractions remain.

Despite ongoing tensions in the Middle East, sharp comments by U.S. President Donald Trump about a "soon-ending" war led to a rise in global markets and indices.

Stock markets rise

Global stock indices showed a weak rebound during Tuesday's trading. Low prices, including the German DAX (+2.5%) and French CAC 40 (~+2%), helped halt the slowdown, opening a new week after a three-day decline. The Asian MSCI index, covering Japanese stocks, gained around 3.3%, signaling a slowdown in broad positive sentiment.

Market support came from U.S. President Donald Trump's remarks, where he stated that the war in the Middle East could "soon end." This served as a signal for the recovery of investments in risk assets after a period of uncertainty.

As a result, government bond yields sharply fell, as investors moved capital from safe assets into stocks, expecting a reduction in geopolitical risks.

Oil market

Oil prices sharply dropped on Tuesday after a recent surge, when Brent and WTI reached four-year highs due to supply disruption risks via the Strait of Hormuz. Brent futures fell by more than 11%, at one point dropping below $88.05 per barrel, before adjusting the fall to about 9%.

This decline occurred as the threat of conflict resolution and the potential de-escalation process eased after Trump's remarks, although contradictory signals from Iranian officials remained.

However, experts warn that the strategic strait remains a critical hub for increasing oil supplies, with 20% of global maritime transport passing through it.

Market sentiment shift

On Tuesday, investors increasingly refrained from seeking safe assets, such as bonds and gold, preferring stocks, particularly in Europe and Asia. The currency market also reacted to the decreasing tension: the U.S. dollar weakened slightly after significant fluctuations in recent days, contributing to the growth in stock indices.

On the other hand, Iranian military statements about continuing the blockade of oil exports and potential countermeasures complicate the prospects for a swift peace, keeping the market in a state of high volatility.

Markets remain sensitive to political statements and the prospects of the conflict in the Middle East. The coming days will likely reveal whether the current positive sentiment will persist or if uncertainty will rise again.

We also informed about gold prices: Central bank policy focus drives sideways action above key averages.

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