Donald Trump played up the prospects of a diplomatic end to the US-Israel war with Iran, postponing threatened strikes on Tehran’s energy infrastructure and soothing markets.
The US president’s apparent shift after nearly a month of hostilities came as the White House faces growing pressure to find a way out of the conflict due to surging oil prices and lacklustre support from the American public.
Stocks and bonds rebounded on Monday after Trump’s comments, reversing earlier losses, while oil prices fell. The blue-chip Stoxx Europe 600 index rose 0.6 per cent, having dropped more than 2 per cent in early trading. Brent crude fell from about $113 a barrel to a low of $96.
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