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Trump Suspends Strikes as Markets Reprice Risk

Markets reacted to the president’s claim that talks with Iran would begin even though Tehran denied any negotiations were scheduled.

Overview

  • President Donald Trump said he called off planned strikes and announced talks with Iran, a move markets seized as a sign of de‑escalation on Monday.
  • Brent and WTI crude plunged roughly 4–7 percent, reflecting a lower near‑term supply risk after an OPEC+ agreement to add about 188,000 barrels per day from September also eased pressure on prices.
  • U.S. equities rallied and the Dow closed at a record as oil losses and weaker inflation fears pushed Treasury yields modestly lower.
  • Tokyo and Washington confirmed a coordinated yen‑buying intervention that firmed the currency, and markets reacted to U.S. Treasury comments about expanding Fed repurchase facilities to support dollar liquidity.
  • Volatility remained high regionally with South Korea’s Kospi giving back part of a record single‑day surge, and investors are watching this week’s U.S. jobs reports and corporate earnings for signs the repricing will hold or reverse.