Oil Prices Plunge as Trump Pauses Iran Strikes, Markets Rally on Easing Tensions

New Delhi, March 2026 : Global oil markets witnessed a sharp decline on Monday, with benchmark crude prices tumbling after US President Donald Trump announced a temporary halt on military strikes against Iran and signalled progress in diplomatic talks.

Brent crude futures dropped more than 13 per cent, falling by nearly $17 to touch an intraday low of around $96 per barrel. Similarly, US West Texas Intermediate (WTI) crude declined by about $13, or 13.5 per cent, to $85.28 per barrel. The steep fall in prices came as fears of supply disruptions eased following signs of de-escalation in the ongoing West Asia conflict.

The market reaction followed Trump’s announcement that he had directed the US Department of Defense to postpone planned airstrikes on Iranian power plants and energy infrastructure for a five-day period. He described recent engagements between the United States and Iran as “very good and productive,” raising hopes of a possible diplomatic resolution.

In a post on Truth Social, Trump indicated that the pause in military action would depend on the outcome of ongoing discussions. He added that the decision was influenced by the “tenor and tone” of the talks, suggesting that tensions could ease further if negotiations continue positively.

The easing geopolitical concerns also lifted investor sentiment in financial markets. Gift Nifty futures surged sharply, rising to 23,533.50 compared to the previous close of 22,465 — a gain of over 1,000 points or nearly 4.75 per cent. Later in the session, around 5:20 pm, Gift Nifty was still up by 853.50 points, or 3.80 per cent, at 23,318.50.

Precious metals also showed significant movement following the announcement. Gold and silver prices, which had earlier witnessed steep declines amid volatility, rebounded strongly in both domestic and international markets.

In the global market, spot gold trimmed its losses to around 2.6 per cent after initially falling nearly 5 per cent during the session. On the domestic front, gold prices on the Multi Commodity Exchange (MCX) also recovered, reducing losses to about 3 per cent after plunging nearly 10 per cent earlier in the day.

The sharp movements across asset classes highlight the sensitivity of global markets to geopolitical developments, particularly in the energy-rich Middle East. Analysts say that continued diplomatic progress between the US and Iran could further stabilise markets, while any escalation may trigger renewed volatility.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)