What's Happening
Trump reversed course on threatened strikes against Iranian energy infrastructure, citing active negotiations. The U.S. reportedly sent Iran a 15-point peace plan, with Trump stating "we're in negotiations right now" to end the Middle East conflict.
Market Impact
Oil prices fell sharply on de-escalation signals, easing inflation concerns. Gold jumped over 2% as declining crude tempered persistent price pressures. Asia-Pacific markets opened higher on the reduced geopolitical risk premium.
Broader Implications
A negotiated settlement would remove a major tail risk to energy markets and global growth. Conversely, failed talks could reignite oil volatility and complicate the Fed's inflation narrative heading into Q2.