Overview
- Iran’s foreign ministry said it is reviewing a U.S. proposal to end the conflict, and the U.S. paused its Strait of Hormuz ship‑escort effort after President Trump claimed progress and warned strikes would resume if talks fail.
- Oil prices fell hard on the deal signals, with Brent down about 8% on Wednesday to near $101 a barrel and hovering around the $100 mark on Thursday, easing pressure on fuel costs but still well above pre‑war levels.
- Stocks jumped worldwide following Wednesday’s slide in crude, with the S&P 500 and Nasdaq closing at records, Japan’s Nikkei topping 62,000 after a holiday break, and India’s Sensex ending up 940 points at 77,958.52.
- Officials and reports said a draft deal could halt fighting yet leave Iran’s nuclear program and the reopening of the Strait unresolved, and Trump’s threat of “much higher” bombing kept markets on edge as prices whipsawed.
- Analysts cautioned that even if tankers resume passage, repairs and precautionary stockpiling could keep oil elevated, and Indian data showed foreign funds selling stocks, a sign that capital flows remain fragile while Tehran prepares its response.