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Markets rebound after Donald Trump postpones attack on Iranian energy

Stocks reverse losses and oil tumbles after US President says there have been ‘constructive’ talks with Tehran

Stock markets rebounded and oil tumbled on Monday after US President Donald Trump said Washington would postpone attacks on Iranian energy infrastructure following “constructive” talks.

Brent crude, which had earlier reached more than $114 a barrel, dropped as low as $96 in volatile trading, before climbing back to about $102, down more than 9 per cent on the day. The US oil benchmark West Texas Intermediate was down 8 per cent at $90 a barrel.

On Wall Street, the S&P 500 was up 1.1 per cent by afternoon in New York, as the Vix “fear gauge” of expected volatility tumbled. The Stoxx Europe 600, which had entered so-called correction territory when the market opened on Monday, reversed the morning’s losses to finish the day 0.6 per cent higher.

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