In a surprise tactical shift, US President Donald Trump has ordered a temporary halt to planned strikes on Iran’s energy infrastructure, signalling a narrow diplomatic opening even as tensions remain elevated across the Middle East.
Trump said he has instructed the US defence department to postpone airstrikes on Iranian power plants and energy assets for five days, making the decision contingent on the outcome of ongoing negotiations.
In a post on Truth Social, he noted that Washington and Tehran had held “very good and productive conversations” over the past two days, raising hopes of a broader de-escalation.
For financial markets, the five-day pause offers only temporary relief, with sentiment likely to remain fragile:
Any breakthrough in talks could ease energy prices and risk assets
A breakdown may trigger fresh spikes in oil and renewed global market stress
The coming days will be critical in determining whether this pause marks the beginning of de-escalation—or merely a brief lull before further escalation.
The pause follows Trump’s earlier ultimatum giving Iran 48 hours to reopen the Strait of Hormuz, a critical global energy chokepoint through which roughly a fifth of the world’s oil and LNG supplies pass.
Iran is widely seen as effectively blocking the waterway, amplifying fears of a prolonged supply shock.
Tehran has responded with sharp warnings, stating it would:
“Irreversibly destroy” key infrastructure across the Middle East, including water systems
Target power plants supplying electricity to US bases
Strike economic, industrial and energy assets linked to American interests
Despite Trump’s reference to a possible “complete and total resolution”, no clear roadmap has emerged for ending the conflict.
Earlier US messaging had pointed to regime change in Iran
Objectives have shifted repeatedly during the conflict
Iran’s leadership remains intact despite targeted strikes on senior figures
The prolonged standoff has already taken a heavy global economic toll:
Oil prices have surged amid supply disruption fears
Shipping and insurance costs have risen sharply
In the US, fuel prices have climbed significantly
Analysts say the lack of a clear exit strategy, combined with Iran’s continued leverage over Hormuz, leaves the situation highly volatile.