Global oil prices climbed on Friday as markets reacted cautiously to US President Donald Trump’s decision to delay a potential strike on Iran, extending uncertainty over the ongoing Middle East crisis.
Crude initially dipped but rebounded sharply as trading opened in Europe, with Brent crude nearing $110 per barrel. Prices have surged dramatically since the conflict began on February 28, reflecting deep concerns over energy supply disruptions linked to the Strait of Hormuz, a critical channel for roughly 20 percent of global oil and gas flows.
The White House confirmed that Trump had postponed planned military action against Iranian energy facilities until April 6, following what he described as “positive” developments in talks. However, Iranian officials have denied that meaningful negotiations are taking place.
Posting on Truth Social, Trump insisted discussions were progressing well and said the delay came at Tehran’s request. The move marks the second extension in recent days, fuelling scepticism among investors about Washington’s strategy.
Tehran, through state-linked media, confirmed it had responded to a US proposal via intermediaries. Its demands reportedly include an end to US-Israeli attacks, war reparations, and recognition of Iran’s sovereignty over the Strait of Hormuz.
Despite the diplomatic gestures, tensions remain high. Reports suggest the Pentagon is weighing the deployment of up to 10,000 additional troops to the Middle East, signalling that military escalation remains a real possibility.
Markets React With Caution
Global stock markets showed mixed performance. Major Asian indices, including Tokyo and Seoul, declined, while European markets edged higher.
Analysts say the delay offers little reassurance. Stephen Innes of SPI Asset Management described it as “time bought, not clarity”, warning that investors are losing confidence in shifting US messaging.
The Organisation for Economic Co-operation and Development added to concerns, warning that rising oil prices could push US inflation above four percent this year significantly higher than earlier forecasts.
Meanwhile, the World Trade Organization (WTO) cautioned that global trade is facing its worst disruption in decades, while the World Bank signalled readiness to support vulnerable economies.
Governments Move to Contain Impact
Countries worldwide are rolling out emergency measures to cushion the blow of rising fuel costs.
India has cut fuel taxes, Vietnam has slashed environmental levies, and Japan is considering easing restrictions on coal-fired power plants. European nations including Spain and Poland have also introduced support packages.
As uncertainty lingers, markets remain on edge caught between fragile diplomacy and the persistent threat of escalation in one of the world’s most critical energy corridors.
