Stocks and energy prices reversed sharply on Monday after U.S. President Donald Trump signalled that the war in Iran was nearing completion. Speaking to CBS News and later at a press conference in Florida, Trump said the conflict was “very close” to finishing and that the United States was making significant progress toward its military objectives.
Oil prices, which had surged overnight amid supply fears, fell sharply during the session. U.S. crude oil, after jumping as much as 32% to $119 per barrel, dropped around 5% to about $86 by late afternoon, while Brent crude slipped more than 3.5% to below $89.
U.S. equities also staged a strong rebound. The S&P 500 closed up 0.83% after earlier falling 1.5%, while the Nasdaq Composite gained 1.38%. The Dow Jones Industrial Average recovered from an 880-point decline to finish the day up 239 points.
Despite the pullback, oil prices remain elevated, with U.S. crude up more than 50% since the start of the year. Gasoline prices in the United States have also surged, with the national average reaching $3.49 per gallon, more than 50 cents higher since the conflict began.
Overseas markets experienced heavy losses earlier in the day. Japan’s Nikkei 225 dropped 5.2%, entering correction territory, while South Korea’s Kospi fell 6%, triggering a temporary trading halt. In Europe, the Stoxx 600 index closed 0.6% lower.
Global policymakers are monitoring the situation closely. Finance ministers from leading industrialised nations discussed the possibility of releasing strategic oil reserves but decided against taking action for now.
Energy markets remain under pressure as disruptions continue around the Strait of Hormuz, a key route for more than 20% of global oil supply. Analysts warn that prolonged transport bottlenecks and tightening storage capacity could force further production cuts across major OPEC producers in the coming days.