Oil Prices Tumble after Trump Eases Concerns Over Iran

Oil prices slumped Thursday after US President Donald Trump appeared to dial down threats of imminent military action on crude producer Iran.

Stock markets and the dollar were far less volatile.

International oil benchmarks Brent North Sea crude and West Texas Intermediate were down nearly four percent after Trump on Wednesday said he would "watch it and see" on possible intervention in the Islamic republic.

Trump added that he was told that the killings of protesters there had stopped.

Crude prices had surged over recent days as Trump talked about coming to the aid of the Iranian people over the crackdown on demonstrations, sparking concerns over possible disruption to global supplies.

"Oil prices are trading sharply lower after Trump signalled he is not taking military action against Iran," noted Victoria Scholar, head of investment at Interactive Investor.

Volatility extended across commodity markets, with silver plunging more than seven percent in Asian deals after hitting a record high above $93.75 an ounce.

This was after Trump also held off slapping tariffs on critical minerals.

The price of gold, which has hit multiple record highs in recent months thanks to its status as a safe haven investment, dipped on Thursday.

In stock markets trading, London's top-tier FTSE 100 index hit a fresh record high after official data showed Britain's economy rebounded in November.

Frankfurt was flat in midday deals as traders reacted to news that Germany's economy eked out meagre growth in 2025, dodging a third straight year of recession.

The Paris stock market fell slightly, dragged down in part by a drop in the share price of TotalEnergies in the wake of oil's retreat.

In Asia, Tokyo closed down 0.4 percent, cooling off after gains fuelled by speculation that Prime Minister Sanae Takaichi would call an election to capitalise on strong public approval ratings.

Takaichi's ruling party and a coalition partner said Wednesday she intends to dissolve parliament next week for a snap election, seen as a chance to push through her ambitious policy agenda.

Wall Street stocks fell again Wednesday as investors shrugged off solid US bank earnings and an increase in the country's retail sales for November.

Analysts meanwhile noted investor unease about possible US interventions in Greenland, and Trump's threats to Federal Reserve autonomy, most recently in the Department of Justice's criminal probe of the central bank. -- AFP/RSS