by Stefan J. Bos, Worthy News Chief International Correspondent
WASHINGTON/TEHRAN/JERUSALEM (Worthy News) – U.S. President Donald Trump suggested Wednesday that Washington and Tehran were moving closer to an initial agreement to end the war involving Iran, the United States, and Israel, prompting a sharp rally in global financial markets and a decline in oil prices.
However, details of the possible agreement remained unclear, and Trump renewed threats of a fresh bombing campaign targeting the Islamic Republic if no deal is reached.
Trump wrote on social media that the two-month conflict could soon end and that disrupted oil and natural gas shipments might restart.
Yet he cautioned that this depended on Iran accepting what he described as a proposed agreement, without providing details.
“If they don’t agree, the bombing starts,” Trump warned.
STRAIT OF HORMUZ TENSIONS
Trump’s comments came after he suspended a short-lived U.S. effort aimed at forcing open a protected shipping corridor through the Strait of Hormuz, one of the world’s most strategically important waterways.
Before the conflict escalated, major volumes of oil, natural gas, fertilizer, and petroleum products passed through the narrow shipping route daily.
Markets reacted positively to hopes that tensions may ease.
Global stock indexes climbed, while oil prices retreated sharply on expectations that a ceasefire or broader settlement could eventually reopen shipping lanes and reduce fears of a prolonged global energy crisis.
The S&P 500, which tracks 500 of America’s largest publicly traded companies, rose roughly 1 percent, while global shares approached record highs amid improving investor sentiment.
OIL PRICES FALL
U.S. crude oil prices fell below 100 dollars per barrel, easing fears of further inflation and reducing pressure on central banks to raise interest rates.
Bond yields also declined as investors anticipated less economic disruption if the conflict subsides.
The U.S. dollar weakened slightly, hovering near levels seen before the war began.
A person familiar with the negotiations reportedly said Iran is evaluating a U.S. proposal that could gradually reopen the Strait of Hormuz and lift blockades affecting Iranian ports if Tehran agrees.
Trump told the PBS NewsHour television program there was “a very good chance” the war could end and suggested progress could come before his planned trip to China next week.
CHINA URGES STABILITY
China also signaled concern over the energy crisis.
Beijing reportedly urged Iran’s foreign minister to move swiftly toward reopening the Strait of Hormuz, underscoring growing international pressure to stabilize global energy supplies before Chinese President Xi Jinping is expected to meet Trump in Beijing next week.
Investors were also watching fresh economic data from the United States ahead of Friday’s closely watched employment report.
Recent figures suggested the U.S. labor market remains relatively stable despite geopolitical uncertainty and war-related disruptions.
Yet, officials at the Federal Reserve, America’s central bank, warned that uncertainty surrounding inflation and future economic growth remains elevated, while analysts said easing geopolitical fears and strong technology-related earnings helped fuel the latest rally in global markets.
Despite optimism surrounding negotiations, observers cautioned that the conflict remains volatile and that any breakdown in talks could quickly reignite fears of wider regional war and renewed disruptions to global trade and energy supplies.
Copyright 1999-2026 Worthy News. This article was originally published on Worthy News and was reproduced with permission.
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