Global markets rallied on Monday after Donald Trump suggested the war with Iran could end soon, triggering a sharp drop in oil prices while stocks and cryptocurrencies moved higher.
The comments followed days of extreme volatility sparked by a joint United States and Israel military campaign against Iran that had driven energy markets sharply higher on fears of a prolonged supply shock.
Crude oil prices quickly retreated from earlier highs near $100 as traders unwound geopolitical risk premiums, with West Texas Intermediate crude falling toward the mid-$80 range.
Equity markets responded positively to the easing tension, with the S&P 500 rising about 0.7% as investors rotated back into risk assets and reduced expectations of an energy-driven inflation surge.
Cryptocurrency markets also strengthened as Bitcoin climbed roughly 2% to around $69,000, reflecting improved risk appetite after earlier geopolitical uncertainty pressured digital assets.
The market swings followed a week of escalation that began when US and Israeli forces launched strikes on Iranian nuclear and military facilities, killing Ali Khamenei and prompting missile and drone retaliation across the region.
Energy traders had been particularly concerned about disruptions to the Strait of Hormuz, where roughly 20% of global oil supply passes, but Trump’s remarks eased fears the conflict would escalate into a broader regional crisis.
At the time of reporting, Bitcoin price was $69,003.99.