On Monday, President Donald Trump announced a halt to the US strikes on Iran’s energy infrastructure following the productive talks with Iranian officials.
Recently, Iranian officials rejected Trump's claims, calling it “fake news” after Tehran launched a barrage of missiles at Israel in a recent wave of strikes.
Iran's powerful parliament speaker Mohammad Baqer Qalibaf said no negotiations had taken place in recent days.
"No negotiations have been held with the U.S. and fake news is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped," he wrote on X.
Soon after Trump’s announcement on Truth Social post regarding the pause in military operations for five days, the markets witnessed a sudden spike in stock prices and decline in oil prices, dropping below $100 a barrel.
Global markets saw a relief rally overnight on Monday following President Trump’s decision to push back a critical deadline regarding the Strait of Hormuz.
The President added a five-day extension to his original Saturday ultimatum, which had demanded that Iran reopen the vital shipping lane within 48 hours.
Strait of Hormuz is a primary artery for global energy, facilitating the passage of approximately 20% of the world's oil and liquefied natural gas (LNG).
Following Qalibaf’s revelation, Iran’s elite Revolutionary Guards (IRGC) said they were launching fresh attacks on US targets. They also labelled Trump’s words as “psychological operation” and Tehran would not come under the influence of such operations.
The recent remarks contradicted by Trump and Iran will reverse the markets’ gains, expecting to push the oil prices higher in coming days.