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Trump Halts Iran Strikes, Oil Prices Surge
23 Mar
Summary
- President Trump announced postponement of military strikes against Iran.
- Oil prices experienced a significant drop following the announcement.
- Goldman Sachs raised oil price forecasts for 2026 due to supply disruptions.
US President Donald Trump announced that "good and productive" talks were held with Iran regarding a resolution of hostilities, leading to the postponement of military strikes. The department of war has been instructed to delay any strikes against Iranian power plants and energy infrastructure for five days, contingent on ongoing discussions.
This development caused Brent crude oil prices to fall sharply by over 11% on Monday. However, oil prices later saw some gains, trading 7.73% lower as of late Monday afternoon. Earlier, oil prices had risen on fears of escalation due to an ultimatum from the US to Tehran over the Strait of Hormuz.
US futures and GIFT Nifty experienced significant rebounds, trading in positive territory, signaling a strong start for upcoming Wall Street sessions. S&P 500 futures and Nasdaq 100 futures both showed considerable gains.
Separately, Goldman Sachs has raised its oil price forecasts for 2026. The firm cited prolonged disruptions in flows through the Strait of Hormuz as a major factor, describing it as the largest supply shock for global crude markets. Brent is now expected to average $85 a barrel in 2026, an increase from the previous $77 forecast.
