Stock market rebounds on Trump’s sudden de-escalation, but rupee remains close to 94/$
Investors remain cautious after the Wall Street Journal reported on Monday that American allies in the Persian Gulf are “inching toward joining the fight against Iran”
Trump claimed Iranian negotiators are ‘”begging’ us to make a deal”. The Indian stock market opened as much as 2% higher on Tuesday after US President Donald Trump’s sudden de-escalation of the war in West Asia, which also helped cool crude oil prices sharply.
Monday, Trump said on Truth Social that the US and Iran had held “very good and productive conversations” over the last two days regarding a “complete and total resolution” of hostilities. The talks, the US President said, would continue over the week. As such, the US was postponing previously-threatened strikes on Iranian power plants for five days. However, Iran denied any discussions had taken place.
Trump’s statement, though, was enough to provide relief to global financial markets and crude oil prices. However, investors remain cautious after the Wall Street Journal reported on Monday – after Trump’s post on the five-day delay – that American allies in the Persian Gulf are “inching toward joining the fight against Iran” after facing persistent attacks from Iran and the closure of the key waterway of the Strait of Hormuz. Consequently, global markets and crude oil erased gains.
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