NEW DELHI: In a major diplomatic development amid heightened West Asian tensions, global financial markets staged a sharp recovery on Monday following reports that US President Donald Trump has proposed a temporary waiver on Iranian oil sanctions until a final peace deal is brokered.
According to Tehran’s state-aligned Tasnim News Agency, the proposal represents a tactical shift by Washington to ease global energy constraints while maintaining diplomatic leverage.
Markets React Positively to the Briefing
The news immediately cooled investor anxieties, which had spiked earlier in the day following aggressive weekend rhetoric from the White House.
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Equities Rally: The pan-European STOXX 600 index climbed 0.2% to hit an intra-day high, while US tech stocks saw relief as Nasdaq 100 futures pared heavy earlier losses.
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Oil Prices Stabilize: Benchmark crude prices eased from multi-month highs. Brent crude traded 0.23% lower, hovering around the $109 per barrel mark, while West Texas Intermediate (WTI) dropped 0.9% to settle at $100.27 per barrel.
The China Factor and Geopolitical Impasse
The reported waiver follows President Trump’s high-stakes bilateral summit with Chinese President Xi Jinping. During the discussions, Trump reportedly failed to convince Beijing to completely halt its high-volume imports of Iranian crude. While China agreed to refrain from supplying Tehran with active military hardware, President Xi firmly maintained that Beijing would continue its energy trade with Iran.
Consequently, Trump indicated he is considering lifting secondary sanctions on specific Chinese corporate entities that act as primary buyers of Iranian oil.
Negotiation Deadlock and “Zero Hour” Warnings
The proposed sanctions waiver arrives at a volatile juncture. Earlier on Monday, oil prices had surged dramatically after Trump issued a stark weekend warning stating that “the clock is ticking” and that Iran “better get moving” regarding stalled truce negotiations.
While Washington has simultaneously been consulting with Israeli Prime Minister Benjamin Netanyahu on potential military contingencies if the diplomatic track collapses, intelligence sources indicate that Tehran is beginning to show operational flexibility. Reports suggest Iran may be willing to accept a shorter strategic suspension period of three to five years on key contentious issues to secure immediate sanctions relief.
