- Brent crude fell over 11% after US-Iran 'talks' eased Middle East tensions on Monday
- Trump postponed military strikes on Iranian energy infrastructure amid ongoing discussions
- GIFT Nifty surged over 4%, and US futures gained, signaling positive market sentiment
Brent Crude on Monday fell over 11% on Monday after US President Donald Trump held 'good' talks with Iran. However, it saw some gains with Brent crude trading 7.73% lower as of 4:48 p.m.
Trump in a post on Truth Social said that US and Iran over the last two days had good and productive talks regarding a complete and total resolution of hostilities in the Middle East. He further added that the talks will continue through the week and he has instructed the department of war to postpone any and all military strikes against Iranian power plants and energy infrastructre.
The attacks will be postponed for give days subject to the goingoing meetings and discussions.
Oil prices had risen sharply on Monday morning as markets assessed the risk of further escalation after the US issued an ultimatum to Tehran over reopening the Strait of Hormuz. Brent crude for May delivery rose 1% to $113.32 a barrel, reversing earlier losses, while WTI crude gained about 2.8% to $101.01 a barrel.
Following the news, GIFT Nifty jumped over 4% or 870 points and traded 3.67% or 824.50 higher at 23,327 as of 4:51 p.m. IST., indicating an opening in the green for the upcoming sessions. US futures also reversed its trend and was trading in the positive, indicating a positive start for Wall Street. S&P 500 futures as of 5:00 p.m. were up 2.16% at $6,700.75, while Nasdaq 100 futures gained 1.96% to $24,573.
ALSO READ: Markets To Rebound? GIFT Nifty Soars Nearly 900 Points As Trump Defers Iran Strikes, Holds Talks
Goldman Sachs Raises Oil Forecasts
Goldman Sachs Group Inc. raised its oil price forecasts for 2026 due to the prolonged disruption of flows through the Strait of Hormuz, which it described as the largest-ever supply shock for global crude markets.
Brent is expected to average $85 a barrel in 2026, up from an earlier forecast of $77, analysts including Daan Struyven said in a note. The full-year outlook for West Texas Intermediate was hiked to $79 from $72, they said.
The revisions rested in part on an assumption that flows through Hormuz would remain at only 5% of normal levels for six weeks, followed by a gradual one-month recovery, they said in the note dated March 22.
Energy markets have been pitched into turmoil by the US-Israeli war with Iran, with hostilities now entering a fourth week with no sign of resolution. President Donald Trump handed Iran a two-day ultimatum to reopen Hormuz — which connects the Persian Gulf to global markets — or see its power plants bombed. Tehran threatened reprisals.
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