After President Donald Trump on Monday said the U.S. and Iran held “productive” conversations that could lead to a “complete and total resolution” to their war—lowering oil prices and boosting markets—Iranian officials denied anything ever happened, claiming Trump was trying to reduce energy prices and “buy time.”
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Key Takeaways
- In a post on Truth Social, the president wrote that “VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST” had taken place over the previous two days.
- Trump said he ordered the Pentagon to postpone military strikes against Iranian power plants and energy infrastructure for five days.
- Trump’s post did not specify who was negotiating on Iran’s behalf, and it is not immediately clear whether Israel is part of the negotiations.
- Within hours, Iran’s foreign ministry denied having held talks with the U.S., claiming Trump’s remarks were “part of efforts to reduce energy prices and buy time to implement his military plans,” the Associated Press reported, citing an Iranian state-owned outlet.
- “While there have been initiatives by regional countries to de-escalate tensions, Iran’s response has been clear: It did not start the war and all such requests should be directed to Washington,” the ministry said.
How Did Trump’s Post Impact Markets?
The Dow Jones Industrial Average, which soared in premarket trading by more than 1,100 points, rose 1.7% after markets opened Monday morning. The S&P 500 and Nasdaq jumped 1.5% and 1.6%, respectively, with Monday’s positive swing marking a rebound for each index after they posted a fourth-straight losing week. The Dow and Nasdaq last week approached correction territory, or when the market is down 10% from its recent high, with the Dow down 8.6% and the Nasdaq down 8.7%. Brent Crude, the international oil benchmark, dropped by nearly 7% to below $100 after rising as high as $112 last week. The U.S. benchmark West Texas Intermediate similarly fell by 7% to just under $91, after earlier falling below $85.
What Do We Know About Trump’s Earlier Ultimatum?
In a Truth Social post on Saturday evening, Trump wrote that if Iran does not “FULLY OPEN, WITHOUT THREAT,” the Strait of Hormuz within 48 hours, the U.S. military would “hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!” The deadline was set to expire on Monday evening and Iran had warned it would retaliate against such an attack by targeting the energy and water desalination facilities of neighboring Gulf countries aligned with the U.S.
This story was originally published on forbes.com and all figures are in USD.
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