Oil prices have eased back and global financial markets rebounded on the latest hopes of a resolution to the Middle East conflict on reports of a 15-point ceasefire plan offered by the Trump administration to Iran.
Brent crude fell back below 100 US dollars a barrel, down 6% at 98.23 dollars in morning trading on Wednesday, while UK natural gas prices fell 8%.
Stock markets rallied higher in tandem, with the FTSE 100 Index in London up over 1% within the first hour, ahead 103.6 points at 10068.22.
In Europe, the Dax in Germany surged 1.6% while France’s Cac 40 was 1.5% ahead, following big overnight gains on Asian markets.
Energy costs and stocks have seen turbulent trading in recent days, buffeted about by each piece of news on the latest developments in the Middle East.
PRESIDENT TRUMP: There won’t be any nuclear weapons. Iran has agreed to that.
— Department of State (@StateDept) March 24, 2026
We’re in a good bargaining position. We’re way ahead of schedule and they have no navy, air force, or missile protection. Most of their launches we’ve killed. pic.twitter.com/FbwVcC6MND
The latest falls come after reports that Donald Trump’s 15-point plan had been submitted to Iranian officials by intermediaries from Pakistan, who have offered to host renewed negotiations between Washington and Tehran.
But Iranian officials denied any negotiations were taking place in another defiant statement, insisting the Americans were only negotiating with themselves.
The ceasefire hopes come as the US military is preparing to call up at least 1,000 more troops to add to the 50,000 already in the region.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “Oil prices have moved lower on the developments, offering some relief to equities that had been weighed down by worries over inflation and the knock-on impact for interest rates.
“It’s still a highly fluid situation, trying to call how the rest of the week plays out would be unwise, but there are now clearer signs that we are on a path toward de-escalation.”
But experts said energy and stock markets would remain highly volatile.
Richard Hunter, head of markets at interactive investor, said: “It would be premature to call a recovery being in place for the UK’s premier index, although the FTSE 100 has at least crept back into positive territory for the year so far.
“A gain of 1.2% is however almost 8% away from the recent record high recorded at the end of February and underlying pressure remains in place.”
Mr Britzman added that oil prices are unlikely to see a full recovery back to pre-war levels until the crucial Strait of Hormuz shipping route is opened.
He said: “Prices are still sitting at seriously elevated levels.
“Social media posts and press conferences can only go so far, and it will likely take a full reopening of the Strait of Hormuz to drive any meaningful and sustained move lower from here.”
