Crude oil prices dropped on Friday after U.S. President Donald Trump announced he would delay a decision on whether the United States would join Israel's military campaign against Iran, easing immediate fears of an expanded Middle East war.Speaking through White House Press Secretary Karoline Leavitt, Trump said he would take the next two weeks to consider potential negotiations with Iran before deciding on military involvement. “If there’s a chance for diplomacy, the president’s always going to grab it,” Leavitt stated.

“But he’s not afraid to use strength as well.” Trump’s remarks came amid rising tensions following a week of deadly strikes exchanged between Israel and Iran. Markets have perceived the delay as a brief window for diplomacy to avert a broader conflict. The oil market reacted immediately, with Brent crude falling 2.4% to $76.94 per barrel and West Texas Intermediate (WTI) sliding 1.9% to $73.62 per barrel. Analysts warned, however, that volatility remains high. 

“President Trump’s two-week ‘thinking window’ is no cooling-off period — it’s a ticking volatility clock,” said Stephen Innes of SPI Asset Management. “We’re trading a geopolitical powder keg with a lit fuse.” While the possibility of diplomatic talks offered some relief, investors remained nervous. European foreign ministers were scheduled to meet with their Iranian counterpart in Geneva to discuss de-escalation. Global equity markets posted mixed results.

Hong Kong, Shanghai, and Singapore saw gains, while Tokyo’s Nikkei dipped 0.1% amid rising core inflation, driven by soaring rice prices — a sensitive political issue in Japan ahead of national elections. Seoul's Kospi led Asian markets, breaking above 3,000 points for the first time in over three years. Meanwhile, ongoing concerns about Trump’s trade policy also weighed on market sentiment. As the end of a 90-day tariff truce approaches, uncertainty remains over potential new trade deals.

Credit: Independent News Pakistan (INP)