U.S. Pauses Strike on Iran Energy Sector, Oil Plunges as Equities Rally

Market Overview

Global markets staged a sharp reversal yesterday after President Trump announced progress in U.S.-Iran talks and a decision to delay strikes on Irans energy infrastructure. The immediate de-escalation removed a key geopolitical risk trigger, sending oil prices into a steep selloff.

Brent crude fell below the $100 per barrel mark for the first time in a week, closing down more than 10%. As safe-haven demand rapidly unwound, U.S. equities recorded their largest single-day gain in six weeks, with all three major indices finishing firmly in positive territory.

Palantir Technologies surged 7%, driven by news of securing a core Pentagon contract for military AI systems.

Technology & Sector Rotation

Mega-cap tech stocks regained leadership, with Tesla rising 3.5% to lead gains, while NVIDIA rebounded 2% after four consecutive sessions of losses.

Easing geopolitical tensions fueled a strong rally in airlines, travel, and cruise operators, with Royal Caribbean and United Airlines among the top performers.

However, the semiconductor sector showed divergence, as Broadcom and Micron Technology dropped roughly 4%, weighed down by concerns over forward guidance.

Precious Metals & Commodities

Safe-haven flows reversed sharply, triggering a broad-based selloff in precious metals.

• Gold: Spot gold extended losses into a nine-session losing streak, while gold futures dropped more than 10% intraday, reflecting fragile market confidence.

• Silver: Experienced a dramatic V-shaped reversal, plunging 10% before rebounding to close up 4%.

• Industrial metals: LME copper and tin snapped a four-day losing streak, while aluminum prices continued to decline as supply concerns eased.

Fixed Income & FX Markets

With inflation pressures easing alongside the collapse in oil prices, U.S. Treasury yields retreated sharply from eight-month highs, with the 10-year yield falling over 10 basis points.

The U.S. Dollar Index (DXY) weakened to a one-week low, while the offshore yuan (CNH) staged a strong rebound of nearly 400 pips.

In crypto markets, improved liquidity conditions supported a rebound in risk appetite, with Bitcoin reclaiming the $70,000 level, surging 6% from intraday lows.

Hot Topics Outlook● Iran Denies Parliamentary Negotiations with the U.S.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf dismissed reports of negotiations as “market manipulation and false information.”

Iranian state media claimed that external forces are attempting to create “political and social divisions” within the country, calling such reports a “fabricated narrative.”

Senior Iranian officials reiterated that no negotiations are taking place, asserting that Trump‘s decision to delay military action was driven by Iran’s deterrence capabilities.

The commander of Irans Aerospace Force stated that military operations will continue, while sources indicated that Iran is prepared to deliver a strong response if critical infrastructure is targeted.

Meanwhile, reports suggest the U.S. government is considering Ghalibaf as a potential negotiation counterpart.

● Japan Weighs Intervention in Oil Futures Market

Amid surging energy prices driven by Middle East tensions, the Japanese government is reportedly evaluating the feasibility of intervening in oil futures markets.

Sources indicate that relevant authorities have begun reviewing operational mechanisms for potential intervention.

If implemented, this would mark a rare and significant step by Japan in directly managing energy market dynamics.

Key Events to Watch (GMT+8)

• 21:45 (US) – S&P Global Manufacturing PMI (Flash, March)

• 21:45 (US) – S&P Global Services PMI (Flash, March)

• 22:00 (US) – Richmond Fed Manufacturing Index (March)