Trump Suspends Planned Iran Strikes for Five Days, Sparking Global Market Recovery

U.S. President Donald Trump announced a five-day suspension of planned military strikes on Iranian power plants and energy infrastructure on Monday, triggering a broad recovery across global financial markets and a sharp drop in crude oil prices. Trump stated the postponement followed "productive talks" with Iran held over the weekend, though Iran's government promptly denied any direct negotiations had taken place. The announcement came after Trump had issued a 48-hour ultimatum on Saturday, March 21, demanding that Tehran fully reopen the Strait of Hormuz to all shipping. The conflicting accounts from Washington and Tehran left traders cautious even as markets rallied, with one market participant quoted by Swiss financial news service SWI swissinfo.ch describing the announcement as acting "like balm" for investors, while warning it was probably only a "temporary sedative."

DAX jumps 800 points as oil slides from $114 Financial markets worldwide responded sharply to Trump's midday announcement, with European indices posting strong gains before euphoria faded somewhat by the close of trading. The German DAX gained approximately 800 points to close at 22,782 points, a rise of 1.8 percent. Switzerland's SMI closed up 0.6 percent at 12,389 points, having swung between 12,053 and 12,527 points during the session. The French CAC also closed clearly in positive territory, according to SWI swissinfo.ch. Economically sensitive stocks led the gains in Switzerland, with Richemont rising 5.1 percent, Amrize up 3.3 percent, and Geberit advancing 1.9 percent. Oil prices fell sharply: Brent crude, which had reached as high as $114 per barrel at the start of trading, dropped to $104 per barrel by Monday evening. 10 (USD per barrel) — Brent crude price drop on Trump's announcement

2026-03-23T09:00: 114, 2026-03-23T20:00: 104

Iran denies talks; traders warn risks remain elevated Iran's government rejected Trump's characterization of the weekend exchanges as direct negotiations, stating there had been only "initiatives by countries in the region to reduce tensions." Trump subsequently said in television interviews that the talks had taken place the previous night. Robert Halver, head of capital market analysis at Baader Bank, offered an assessment of how the situation should be read by investors, according to Handelsblatt. Traders cited by SWI swissinfo.ch cautioned that the easing should be treated carefully, noting that geopolitical risks had not disappeared and that damage in the Middle East was already significant. Some traders described Trump's reversal using the term "Taco" — shorthand for "Trump always chickens out" — reflecting skepticism about the durability of the pause. Investors had recently feared that oil prices could settle above $120 per barrel, a level that analysts warned would have lasting negative consequences for inflation and economic growth. Consumer sentiment in the eurozone had already weakened more than expected in March against that backdrop, according to SWI swissinfo.ch.

Three weeks of conflict leave markets on edge The U.S.-Israel military campaign against Iran, designated Operation Epic Fury, began on February 28, 2026, when initial strikes killed Ali Khamenei, who had served as Iran's Supreme Leader since 1989. Mojtaba Khamenei, his son, was appointed Supreme Leader on March 9, 2026. The conflict has been ongoing for approximately three weeks as of late March 2026, according to reporting cited in the source articles. The five-day suspension does not constitute a ceasefire and leaves the broader trajectory of the conflict unresolved. Trump's original 48-hour ultimatum, issued on Saturday, March 21, had threatened destruction of Iranian power plants if Tehran failed to reopen the Strait of Hormuz. The extension of that deadline by five days represented a significant shift in tone, even as the underlying military posture remained in place. Markets reflected the uncertainty: while the initial reaction was strongly positive, gains moderated by the close of trading as participants weighed the conflicting signals from Washington and Tehran. The situation, as one trader noted, remains "confusing" and sentiment "nervous," with the durability of any diplomatic progress still unconfirmed by either side.