Markets turned upbeat on Wednesday on U.S.-led mediation efforts even as strikes persist and risks to Gulf supply remain.
The global oil benchmark fell below $100 a barrel in early trading on March 25 as investor sentiment turned more optimistic about the prospect that a U.S.-led diplomatic effort might bring about an end to the Iran war, which has choked off Gulf oil supplies and driven sharp price swings in energy markets.
Brent crude oil futures were down nearly 5 percent at around the $95 mark at 9:31 a.m. ET, as the Trump administration’s push to end the Middle East conflict diplomatically came into sharper focus and appeared to build steam despite Iranian denials that negotiations were taking place.
President Donald Trump announced on March 24 that the United States was engaged in negotiations with Iran, with the president indicating that White House adviser Jared Kushner and U.S. special envoy to the Middle East Steve Witkoff were involved, along with Vice President JD Vance and Secretary of State Marco Rubio.
“We’re in negotiations right now,” Trump told reporters at the White House. “We have a number of people doing it. And the other side, I can tell you, they’d like to make a deal.”
Senior Israeli officials in Jerusalem confirmed to Epoch Magazine Israel that the United States, through Pakistan, conveyed to Iran a 15-point plan aimed at ending the war, and that the Trump administration had briefed Israel on the details of the plan.
According to the officials, Washington is awaiting an Iranian response regarding a possible meeting in the near future to discuss the proposal.
Meanwhile, a Turkish official said that Turkey is helping mediate efforts to resolve the conflict by way of a separate diplomatic backchannel. Harun Armagan, vice chair of foreign affairs for Turkish President Tayyip Erdogan’s ruling party, said that Turkey “is playing a role passing messages” between the United States and Iran to further encourage de-escalation and direct negotiations.
Despite Iranian officials ruling out cease-fire talks and the Iranian military continuing to fire missiles at Israel and Gulf neighbors on Wednesday, market confidence appeared boosted by the Trump administration’s diplomatic efforts.
“The mood is on the positive side,” said Amelie Derambure, senior multi-asset manager at Amundi. “[The] market is trading now the idea that peace talks or a ceasefire could be on the way.”
By Tom Ozimek
