Global oil prices fell sharply after US President Donald Trump hinted at a possible end to the Iran conflict, triggering positive reactions in stock markets worldwide. WTI crude dropped 15 percent to $80.59 per barrel, while Brent crude fell 14.35 percent to $84.72 per barrel.
Trump, speaking at a press conference in Florida, said the military operations against Iran and Israel would end soon, dismissing concerns of imminent conflict this week. Analysts noted that the remarks helped ease tensions in the Middle East that had pushed oil near $120 per barrel, the highest since 2022.
Read more: Oil prices drop as hopes grow for end to Iran conflict
Investor confidence rebounded quickly as the market reacted to the war de-escalation signal. The Pakistan Stock Exchange 100 Index rose over 6 percent, closing at 156,177 points after gaining 9,696 points, reflecting renewed optimism.
Regional stock markets also saw gains, with Dubai showing notable rises, while Qatar, Kuwait, and Saudi Arabia markets moved positively. European exchanges followed the upward trend, and Asian markets including Japan, Hong Kong, Korea, and India recorded gains.
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Market experts said the fall in oil prices and the stock market rally indicate a potential return of stability in global energy markets, highlighting the impact of geopolitical developments on investor sentiment.