Crude Plunges, Stocks Rally as Trump Says War 'Pretty Much' Complete

CHICAGO, ILLINOIS - MARCH 02: A sign displays prices for gasoline at a station on March 02, 2026 in Chicago, Illinois. Scott Olson/Getty Images/AFP (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
CHICAGO, ILLINOIS - MARCH 02: A sign displays prices for gasoline at a station on March 02, 2026 in Chicago, Illinois. Scott Olson/Getty Images/AFP (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
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Crude Plunges, Stocks Rally as Trump Says War 'Pretty Much' Complete

CHICAGO, ILLINOIS - MARCH 02: A sign displays prices for gasoline at a station on March 02, 2026 in Chicago, Illinois. Scott Olson/Getty Images/AFP (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
CHICAGO, ILLINOIS - MARCH 02: A sign displays prices for gasoline at a station on March 02, 2026 in Chicago, Illinois. Scott Olson/Getty Images/AFP (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

Oil prices tanked and equities rallied Tuesday following a wild day of swings that came after Donald Trump said the US-Israel war on Iran would be ending earlier than thought.

As the crisis in the crude-rich Middle East continued into a second week, with seemingly little sign of a conclusion on the horizon, the US president said that the campaign was far ahead of his initial timeline of around a month, AFP said.

"I think the war is very complete, pretty much. They have no navy, no communications, they've got no air force," Trump told CBS News by phone.

"If you look, they have nothing left. There's nothing left in a military sense," he added.

Trump told the US broadcaster that the United States was "very far" ahead of his initially stated war time frame of four or five weeks.

He later told a news conference in Florida that "it's going to be ended soon, and if it starts up again they'll be hit even harder".

When asked if he thought the war could end in days or weeks, he replied: "I think soon. Very soon."

The US leader also threatened an attack of "incalculable" size if Tehran blocks oil supplies coming through the Strait of Hormuz, through which a fifth of global supplies pass.

His remarks come just days after he issued a statement saying Iran's "unconditional surrender" was the only acceptable outcome for ending the war, which sent shivers through markets fearing an elongated war.

Still, Iran's Revolutionary Guards responded by saying that they, not the Americans, would "determine the end of the war".

Investors jumped on the comments, sending crude prices plunging around 10 percent Tuesday.

That came a day after extreme swings that saw the commodity rocket 30 percent to a peak above $119 a barrel before plunging to as low as $84.

The recovery had already begun earlier Monday after it emerged that finance ministers from the Group of Seven industrialized nations would discuss tapping stockpiles to ease supply constraints.

Trump also said he would waive some Ukraine war-linked sanctions on Russian oil sales to India, with White House officials reassuring G7 partners that the move would only be temporary.

And Asian stock markets rallied, with Seoul up more than six percent and Tokyo gaining more than three percent. There were also healthy advances in Hong Kong, Shanghai, Sydney, Singapore, Wellington, Taipei, Manila and Jakarta.

That came after all three main indexes on Wall Street ended sharply higher, having reversed early heavy selling.

Meanwhile, diplomatic efforts focused Monday on the Strait of Hormuz, which has been blocked to nearly all oil tankers.

French President Emmanuel Macron said France was working with allies on a "purely defensive" mission to reopen the waterway.

About 10 vessels in or near the Strait of Hormuz have come under attack since Iran blocked the strait in retaliation for the US-Israeli strikes, shipping experts say.

Global shipping giant MSC announced it was formally halting some export shipments from the Gulf, while Bahrain's state-owned energy company Bapco joined counterparts in Qatar and Kuwait in declaring "force majeure" -- a warning that events beyond its control may lead it to miss export targets.

The Saudi defense ministry said Monday it had thwarted a drone attack targeting an oil field in the kingdom's east, near the Emirati border.

"It has been an incredibly wild ride for traders and investors to navigate the price action put to them over the past 24 hours, with breathtaking reversals taking place across many parts of the financial markets," Chris Weston, an analyst at Pepperstone.

"The pressure valve has clearly been released for now. However, volatility across energy markets remains exceptionally elevated.

"While the most extreme stress has eased, markets are still pricing a significant degree of uncertainty and risk.

"The geopolitical backdrop remains fluid, and traders should expect volatility to remain a defining feature of the trading environment in the days ahead."



Oil Falls as Trump Predicts Middle East De-escalation

Wells at the San Ardo Oil Field in San Ardo, Calif., Monday, March 9, 2026. (AP Photo/Nic Coury)
Wells at the San Ardo Oil Field in San Ardo, Calif., Monday, March 9, 2026. (AP Photo/Nic Coury)
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Oil Falls as Trump Predicts Middle East De-escalation

Wells at the San Ardo Oil Field in San Ardo, Calif., Monday, March 9, 2026. (AP Photo/Nic Coury)
Wells at the San Ardo Oil Field in San Ardo, Calif., Monday, March 9, 2026. (AP Photo/Nic Coury)

Oil prices fell on Tuesday after hitting a more than three-year high in the previous session as US President Donald Trump predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to global oil supplies.

Brent futures fell $6.28, or 6.3%, to $92.68 a barrel at 0715 GMT, while US West Texas Intermediate (WTI) crude was down $6.19, or 6.5%, to $88.58 a barrel, reported Reuters.

Both contracts fell as much as 11% earlier before paring some losses. Oil surged past $100 a barrel on Monday to the highest since mid-2022, as ‌supply cuts ‌by Saudi Arabia and other producers during the expanding US-Israeli war ‌on ⁠Iran stoked fears ⁠of major disruptions to global supplies.

Prices later retreated after Russian President Vladimir Putin held a call with Trump and shared proposals aimed at a quick settlement to the war, according to a Kremlin aide, easing concerns about supply.

Trump said on Monday in a CBS News interview that he thought the war against Iran was "very complete" and Washington was "very far ahead" of his initial four- to five-week estimated time frame.

"Clearly Trump's comments about a short-lived war have calmed ⁠markets. While there was an overreaction to the upside yesterday, we ‌think there is an overreaction to the downside today," ‌said Suvro Sarkar, energy sector team lead at DBS Bank, adding that the market was ‌underappreciating risks at these levels for Brent.

"Murban and Dubai grades are still well above $100 ‌per barrel, so practically nothing much has changed in terms of ground realities," he added, referring to benchmark Middle Eastern oil grades.

In response to Trump, Iran's Revolutionary Guards Corps (IRGC) said they would "determine the end of the war," and Tehran would not allow "one liter of oil" to be exported ‌from the region if US and Israeli attacks continued, state media reported on Tuesday, citing the IRGC's spokesperson.

Prices, however, remain under ⁠pressure as Trump ⁠considers easing oil sanctions on Russia and releasing emergency crude stockpiles as part of a package of options aimed at curbing spiking global oil prices, according to multiple sources.

"Discussions around easing sanctions on Russian oil, comments from Donald Trump hinting that the conflict could eventually de-escalate, and the possibility of G7 countries tapping strategic oil reserves all pointed to the same message - that oil barrels will somehow continue to reach the market," Priyanka Sachdeva, a Phillip Nova analyst, said in a note on Tuesday.

"Once traders sensed that supply routes could still be maintained, the initial 'panic premium' that had pushed prices above the $100 mark yesterday started to fade, and oil prices quickly pulled back."

G7 nations had said on Monday they were prepared to implement "necessary measures" in response to surging global oil prices but stopped short of committing to the release of emergency reserves.


Gold Gains on Weaker Dollar, Easing Inflation Concerns

AFP- A saleswoman adjusts gold jewelry for sale at a shop in Lianyungang_ in China's eastern Jiangsu province
AFP- A saleswoman adjusts gold jewelry for sale at a shop in Lianyungang_ in China's eastern Jiangsu province
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Gold Gains on Weaker Dollar, Easing Inflation Concerns

AFP- A saleswoman adjusts gold jewelry for sale at a shop in Lianyungang_ in China's eastern Jiangsu province
AFP- A saleswoman adjusts gold jewelry for sale at a shop in Lianyungang_ in China's eastern Jiangsu province

Gold prices rose on Tuesday, supported by a weaker US dollar and easing energy costs after US President Donald Trump suggested that the war in the Middle East could end soon.

Respite from a potential war-driven surge in inflation would likely reduce the chances of central banks raising interest rates, a positive for non-yielding gold, Reuters said.

Spot gold rose 0.7% ‌to $5,174.49 per ounce, ‌as of 0631 GMT. US gold futures ‌for ⁠April delivery rose ⁠1.6% to $5,184.

The dollar fell 0.4%, making greenback-priced bullion cheaper for holders of other currencies.

Gold prices rose "due to the news flow from US President Trump himself, stating that there is a potential for de-escalation ... So what we could see is that potential inflation expectation starts to tone down given this dramatic fall in ⁠oil price," said Kelvin Wong, a senior ‌market analyst at OANDA.

Oil prices ‌fell by more than 5% following Trump's comments.

But, the US president ‌also warned that US attacks could rise sharply if ‌Iran sought to block tanker traffic through the Strait of Hormuz, which handles one-fifth of the world's oil supply.

The war has effectively shut the strait, stranding tankers for over a week and forcing ‌producers to halt output as storage fills up, sending energy prices soaring.

Gold prices fell by ⁠as much ⁠as 2% on Monday as higher energy costs fanned inflation concerns and further dimmed the prospects for a near-term cut in interest rates by the US Federal Reserve.

Investors expect the Fed to keep rates steady at the end of its two-day meeting on March 18, per CME Group's FedWatch tool.

Markets are now awaiting the US consumer price index for February, due on Wednesday, and Personal Consumption Expenditures (PCE) index - the Fed's preferred inflation gauge - on Friday.

Spot silver rose 2% to $88.73 per ounce. Spot platinum gained 0.7% at $2,196.35, while palladium lost 0.3% to $1,685.01.


Milei Cheers Economic Benefits of Iran War for Argentina

President Javier Milei of Argentina was in New York participating in an investment promotion event. Angela Weiss / AFP
President Javier Milei of Argentina was in New York participating in an investment promotion event. Angela Weiss / AFP
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Milei Cheers Economic Benefits of Iran War for Argentina

President Javier Milei of Argentina was in New York participating in an investment promotion event. Angela Weiss / AFP
President Javier Milei of Argentina was in New York participating in an investment promotion event. Angela Weiss / AFP

Argentine President Javier Milei, a staunch ally of US President Donald Trump and Israel, on Monday hailed the benefits of the Iran war for his country's exports and foreign currency reserves.

The libertarian Milei, who has backed Washington and Israel's strikes on Iran, said he expected an "improvement" in oil and agricultural exports as a result of the 10-day-old conflict, said AFP.

Oil soared past $100 a barrel for the first time in four years on Monday, as Iran fired a new barrage of missiles at its US-allied oil-rich Gulf neighbors and signalled that the Strait of Hormuz would likely remain shut.

Argentina is Latin America's fourth-largest oil producer.

"Argentina, in this context, will see an improvement in its terms of trade because oil prices are rising, and Argentina is a net exporter," Milei told Argentine radio station FM NOW.

"Furthermore, all the grains that Argentina exports, soybeans, corn, and sunflower, are also rising in price," Milei said in an interview from New York, where he was participating in an investment promotion event.

Last week, wheat reached its highest level in a year and soybeans hit their highest point since June 2014 as the war drove up energy and fertilizer costs.

Milei emphasized that the war would boost Argentina's efforts to build up its foreign currency reserves, as demanded by the International Monetary Fund in return for a new $20 billion loan agreement signed last year.

The oil and gas sector accounts for 13.5 percent of Argentina's exports, second behind the agricultural sector, which accounts for more than 60 percent of foreign sales.

Soybeans amount to 24.6 percent of total exports.