Post by : Badri Ariffin

On Thursday, global oil prices saw a significant decline as US President Donald Trump softened his position on Iran, alleviating fears of heightened tensions that could hinder oil supplies globally. Concurrently, US stock markets began to recover after experiencing two days of losses.

Brent North Sea crude and West Texas Intermediate prices dropped over four percent. This downturn followed Trump’s comments on Wednesday, where he stated he would “watch it and see” regarding potential US involvement in Iran and mentioned that the killing of protesters there had ceased.

Previously, crude prices had surged due to Trump's vocal support for the Iranian populace amid government suppression of protests, which raised alarms over possible supply issues. However, his moderated comments significantly mitigated geopolitical fears in the oil market.

“As the tension eases between Iran and the US, the political risk premium associated with oil pricing is quickly diminishing,” noted Kathleen Brooks, research director at XTB.

In the realm of equity markets, uplifted investor sentiment followed robust earnings reports. Taiwanese semiconductor giant TSMC announced fourth-quarter profits that exceeded expectations, enhancing technology stock performance. The Nasdaq Index surged over one percent early on, fueled by growth in leading semiconductor firms.

However, profit-taking activities were observed later in large technology and semiconductor stocks, according to Briefing.com’s analyst Patrick O’Hare.

Earlier losses in US equities were triggered by comments from US Commerce Secretary Howard Lutnick, cautioning that semiconductor firms not manufacturing domestically could face tariffs as high as 100 percent.

Regardless of market fluctuations, all three major US indices finished the day higher. The S&P 500 recorded a gain of 0.3 percent, with Morgan Stanley and Goldman Sachs shares rising 5.8 percent and 4.6 percent, respectively, following strong profits driven by an uptick in mergers and acquisitions.

Over in Europe, London's FTSE 100 hit a new record high spurred by data reflecting a rebound in the UK economy during November. Frankfurt markets showed gains as reports confirmed Germany narrowly dodged a third consecutive recession, benefiting from slight economic growth in 2025. Meanwhile, Paris stocks dipped slightly, weighed down by a decrease in TotalEnergies shares due to falling oil prices.

Asian markets presented a mixed picture, with Tokyo losing 0.4 percent amidst speculation that Prime Minister Sanae Takaichi may call for an early election, backed by favorable approval ratings.

In the commodities sector, silver prices fell by 0.3 percent after experiencing a more than seven percent decline earlier, while gold prices also eased back slightly from recent peaks.

#Global News