Trump probably got spooked by yesterday's Asia stock market crash and started talking trash overnight. One shot brought down oil prices. When A-shares crashed yesterday, US futures also plummeted at night, all driven by high oil price expectations. Just before US market open, Trump said talks with Iran went extremely well these past two days. Therefore, he ordered the Defense Department to delay any military strikes on Iran's power plants and energy infrastructure by 5 days.

The moment he finished speaking, Brent crude oil futures price crashed 10% instantly, with massive short positions being liquidated. Brent crude oil futures price stopped at the previous high of 119 and fell back to around 100 dollars.

US stock markets went from overnight futures plunge to sudden sharp gains at pre-market, with the pessimistic atmosphere suddenly vanishing.

However, Iran's relevant spokesperson said they were not negotiating with the US, nor had any intermediaries brokered talks.

Iran came out to clarify, but didn't cause major market volatility.

Regardless of whether Iran's statement is true or false, Trump's delay of strikes on Iran's energy facilities is real. As long as those facilities aren't hit, the possibility of sustained high oil prices disappears, and the market won't be so panicked.

The current logic is: fear that if Iran gets hit too hard, energy infrastructure will take a long time to rebuild, keeping oil prices elevated for extended periods, leading to global inflation. Then not only will the US raise rates, other countries may also hike rates, liquidity will tighten, and asset prices will crash.

So Trump is afraid of high oil prices too. He created rumors about negotiating with Iran to give himself an excuse not to continue striking Iran's energy infrastructure.

Must give it to Trump, always directing and acting in his own show. The Academy owes him a whole basket of Oscars. #特朗普向伊朗发出48小时最后通牒