Trump pauses strikes on Iranian energy sites causing markets to shift again
US president Donald Trump announced a temporary halt to attacks on Iranian energy infrastructure on Monday as Washington and Tehran engage in negotiations aimed at ending hostilities in the Middle East.
In a post on Truth Social, Trump said the US would pause strikes on Iranian power plants and energy facilities for five days. He added that “good and productive talks” had taken place over the past two days, focused on “a complete and definitive end to hostilities in the Middle East”.
Markets rebound
The announcement triggered an immediate reaction on financial markets. After opening with heavy losses, European stock exchanges reversed course and moved into positive territory.
Paris rose by 2.45 per cent, Frankfurt gained more than 3 per cent and London increased by around 0.5 per cent. In Brussels, the Bel20 index also turned from losses to a gain of 0.70 per cent, although part of those gains later eased.
Ongoing threats to energy infrastructure
Despite the diplomatic overtures, tensions remain high. Prior to Trump’s announcement, Iranian state media published lists of potential targets across the Middle East’s energy sector on Monday, including major power plants in Israel and infrastructure in Saudi Arabia, the United Arab Emirates, Qatar and Kuwait.
One infographic carried the warning: “At the slightest attack on the electricity infrastructure of the Islamic Republic, the entire region will be plunged into darkness.”
Speaker of parliament Mohammad Bagher Ghalibaf also warned that Iran would “irreversibly” destroy vital infrastructure across the region in the event of further attacks.
“All access routes to the Gulf will be littered with various types of naval mines"
Iran has reiterated threats to escalate further if its territory is targeted. According to Iranian media, the country could deploy naval mines to block routes through the Persian Gulf.
“All access routes to the Gulf will be littered with various types of naval mines,” the Iranian defence council said, warning the area could face prolonged disruption similar to the closure of the Strait of Hormuz.
The strait, a crucial artery for global oil and gas supplies, has already been severely affected, with significant consequences for the global economy. The US has sought to pressure Iran to reopen the passage, including through earlier threats to target key infrastructure such as the Kharg oil export hub.
US president Donald Trump. © MANDEL NGAN / AFP
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