Oil tumbles as Trump pauses Iran strikes, lifting global stocks

Global equity markets opened the week higher on Monday as U.S. President Donald Trump's decision to pause planned military strikes on Iran eased geopolitical tensions that had roiled energy markets throughout July. The diplomatic shift sent oil prices tumbling and lifted stocks broadly, though energy producers fell sharply and Iran pushed back on Washington's characterization of events.

Oil Plunges as Diplomacy Replaces Strikes

Brent crude dropped about 5% to around $83.30 a barrel after Trump announced on Truth Social that Iran and regional partners had requested time to negotiate a deal involving the "Immediate, Complete and Total" reopening of the Strait of Hormuz and measures addressing Tehran's nuclear program. U.S. benchmark crude fell by a similar magnitude.abcnews+1

The pan-European STOXX 600 rose 0.4% to 651.88 in early trading, according to Reuters, with the travel and leisure sector gaining 2.1% while energy stocks fell 2%. U.S. futures pointed to a positive open, with S&P 500 futures up about 0.5% and Nasdaq 100 futures advancing roughly 0.6–0.8%.reuters+2

In India, the Sensex surged as much as 800 points intraday, buoyed by the oil decline, a stronger rupee, and renewed foreign institutional buying. Germany's 10-year bond yield fell 5 basis points to 3.158% as lower energy prices eased inflation concerns across the euro zone.economictimes+1

Asian Markets Mixed Despite Oil Relief

Asian markets presented a more complicated picture. Japan's Nikkei 225 fell 1.9% as the yen surged following confirmed U.S.-Japan intervention to support the currency. South Korea's Kospi tumbled over 5% as investors booked profits on Samsung Electronics and SK Hynix ↘ 0.70% after last week's historic rally. Hong Kong's Hang Seng bucked the trend, gaining 0.6%.ndtvprofit+1

Asian energy producers bore the brunt of the oil decline. Japan's Inpex fell about 3.5%, while Australia's Woodside Energy ↘ 3.28% declined around 1.8%.investing

Iran Disputes Washington's Narrative

Tehran responded cautiously to Trump's framing. Iranian officials, reporting via the Mehr news agency, dismissed claims that Iran had requested a pause as "nothing but a new lie" and said military forces remained on high alert. Iran's foreign ministry spokesperson said no direct negotiations with the United States were taking place, though discussions with Oman were continuing.economictimes+1

Investors now face a week packed with catalysts, including earnings from Berkshire Hathaway ↗ 0.31%, Eli Lilly ↘ 2.39%, Walt Disney The Walt Disney Company ↗ 2.03%, and Palantir ↗ 2.10%, culminating in Friday's U.S. jobs report that could shape expectations for a potential Federal Reserve rate hike in September.fxstreet+1