• Trump orders a five-day halt on military strikes against Iranian power plants.
• The decision follows productive talks between the US and Iran on resolving hostilities.
• This shift in stance has implications for global oil markets, which reacted immediately.

US President Donald Trump announced on Monday that there would be a five-day postponement of military strikes against Iranian power plants, citing “very good and productive conversations” held with Tehran over the previous two days. “I have instructed the Department of Defense to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions,” Trump posted on his Truth Social platform, highlighting the potential for diplomatic resolution in the Middle East, according to SCMP, Al Jazeera, and India Times.

This announcement comes after an earlier ultimatum issued by Trump, threatening to "obliterate" Iran's energy infrastructure unless it reopened the strategically important Strait of Hormuz within 48 hours. Reports suggest that Iran responded with a firm warning, stating they would target US regional interests if strikes were initiated, adding tension to the situation. The Iranian embassy in Kabul emphasized this stance following the ultimatum, according to Middle East Eye and Le Monde.

The reactions to Trump's pause were immediate in financial markets, with oil prices falling sharply. Brent Crude dropped over eight percent, while Wall Street futures surged two percent, as traders reacted to the de-escalation news with optimism. Trump's announcement is seen as a tactical shift, possibly influenced by rising oil prices and domestic pressure from American consumers, according to Anadolu Agency and India Times.