Washington: Global crude oil prices dropped sharply after US President Donald Trump indicated that the war involving Iran could end soon.
Crude oil, which had surged to nearly $120 per barrel, has now fallen to below $90 per barrel. Meanwhile, gold and silver prices moved higher.
Trump warned that if Iran attempts to block oil trade through the Strait of Hormuz, the United States would respond with significantly stronger action. He also suggested that Washington is considering the possibility of taking control of the strategic waterway.
Following these remarks, oil prices began to decline rapidly in global markets.
Global markets rebound
With oil prices easing, global equity markets are expected to recover. Asian markets traded higher in early sessions.
- Japan’s Nikkei: up 3.5%
- Shanghai Composite: up 0.5%
- Hong Kong Hang Seng: up 1.5%
- KOSPI (South Korea): up 6.5%
India’s GIFT Nifty also traded positive, indicating a likely strong opening for Indian markets.
Previous day’s decline
On the previous trading day, global markets fell sharply due to the spike in oil prices.
India’s Sensex dropped 1,352.74 points to close at 77,566.16, while the Nifty fell 422.40 points to end at 24,028.05.
Oil marketing companies, automobile firms and other oil-dependent sectors saw heavy losses, while IT stocks ended the day in gains.
US markets recover
US markets initially opened lower but recovered after Trump’s remarks about a possible end to the conflict.
- Dow Jones: +0.50%
- S&P 500: +0.83%
- Nasdaq: +1.38%
Technology stocks such as Nvidia, AMD, Intel and Sandisk posted strong gains.
Gold prices also edged higher in international markets, while silver prices climbed close to $90 per ounce.
