Global oil prices fell sharply on Thursday after United States President Donald Trump signalled a softer stance on Iran, easing market fears of an imminent military confrontation that could disrupt global crude supplies.
International benchmarks Brent crude and West Texas Intermediate (WTI) both dropped by nearly four percent after Trump said he would “watch it and see” regarding possible US intervention in Iran. He also claimed he had been informed that the killing of protesters in the country had stopped, further calming geopolitical tensions that had driven prices higher earlier in the week.
Crude markets had rallied in recent days on concerns that escalating US rhetoric over Iran’s internal unrest could lead to military action or new sanctions, threatening supply from one of the world’s key oil producers. Trump’s more cautious tone, however, triggered a swift reversal.
“Oil prices are trading sharply lower after Trump signalled he is not taking military action against Iran,” said Victoria Scholar, head of investment at Interactive Investor, noting that traders quickly unwound risk-driven positions.
Commodities retreat as volatility spreads
The pullback extended beyond oil, with heightened volatility across commodity markets. Silver prices plunged more than seven percent in Asian trading after briefly surging to a record high above $93.75 an ounce. The sharp fall followed Trump’s decision to delay imposing tariffs on critical minerals, easing concerns about supply constraints.
Gold prices also edged lower. The precious metal, which has notched multiple record highs in recent months on strong safe-haven demand, retreated as geopolitical risks appeared to ease and investors rotated into riskier assets.
Mixed performance in global stock markets
Equity markets showed mixed performance as investors digested fresh economic data and shifting political signals.
In Europe, London’s FTSE 100 climbed to a new all-time high after official figures showed the UK economy rebounded in November, boosting confidence in domestic growth. Germany’s DAX was flat in midday trading after data indicated the country narrowly avoided a third consecutive year of recession in 2025, posting modest growth.
Paris stocks slipped, weighed in part by shares of energy giant TotalEnergies, which fell alongside oil prices.
Asian markets ended mostly lower. Tokyo’s Nikkei 225 declined 0.4 percent, easing after recent gains driven by speculation around a snap election. Japan’s Prime Minister Sanae Takaichi confirmed plans to dissolve parliament next week, a move widely seen as an attempt to capitalise on strong approval ratings and advance her policy agenda. Hong Kong and Shanghai also closed in negative territory.
On Wall Street, US stocks fell again on Wednesday, with investors largely overlooking solid bank earnings and stronger-than-expected retail sales for November. Analysts pointed to lingering unease over Trump’s broader policy posture, including talk of potential US intervention in Greenland and renewed concerns about political pressure on the Federal Reserve amid a Justice Department criminal probe involving the central bank.
Market snapshot (around 1100 GMT)
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Brent North Sea Crude: Down 3.8% at $64.03 per barrel
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West Texas Intermediate: Down 3.8% at $59.69 per barrel
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London (FTSE 100): Up 0.5% at 10,233.59
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Paris (CAC 40): Down 0.3% at 8,304.05
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Frankfurt (DAX): Flat at 25,286.23
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Tokyo (Nikkei 225): Down 0.4% at 54,110.50
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Hong Kong (Hang Seng): Down 0.3% at 26,923.62
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Shanghai Composite: Down 0.3% at 4,112.60
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New York (Dow Jones): Down 0.1% at 49,149.63
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Euro/Dollar: $1.1636
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Pound/Dollar: $1.3424
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Dollar/Yen: 158.46
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Euro/Pound: 86.71 pence
As markets continue to track developments in US foreign policy and global economic data, analysts warn that oil and commodities could remain volatile, with prices highly sensitive to shifts in political rhetoric and geopolitical risk.
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