Oil rises, stocks fall amid uncertainty over US-Iran talks

March 26, 2026 / 9:44 PM

Stock brokers monitor share prices at a stock exchange

Sharjah 24 – AFP: Oil prices surged while global stock markets declined on Thursday as uncertainty grew over potential peace talks between the United States and Iran, after Tehran rejected Washington’s proposal to end the nearly four-week conflict.

Market sentiment shaken

Earlier optimism had lifted markets after US President Donald Trump announced a delay in strikes on Iran’s energy infrastructure and hinted at ongoing negotiations. However, doubts over the talks, combined with the near closure of the Strait of Hormuz—a key route for around 20% of global oil and gas shipments—have weighed heavily on investor sentiment.

Oil prices and dollar strengthen

Crude prices jumped more than 4%, with Brent nearing $102 per barrel and West Texas Intermediate (WTI) rising above $94. At the same time, the US dollar strengthened against major currencies, reflecting a shift toward safe-haven assets.

Global stocks and bonds under pressure

Equity markets across the US, Europe, and Asia fell, with major indices losing around 1% or more. Analysts noted that rising oil prices typically trigger sell-offs in stocks and bonds, while government bond yields increased broadly.

Conflicting signals from Washington and Tehran

Mixed messages from both sides have added to the uncertainty. While the US reportedly proposed a 15-point plan to end the conflict, Iran presented its own conditions and signaled reluctance to negotiate. Trump also warned of severe consequences if no deal is reached, while suggesting the possibility of targeting Iran’s oil sector.

Ongoing diplomatic efforts

Despite tensions, indirect negotiations are reportedly underway with Pakistan acting as an intermediary. Analysts suggest Iran may prolong the conflict to maintain leverage through elevated energy prices and market pressure.

Economic concerns mount

The Organisation for Economic Co-operation and Development (OECD) has lowered its growth outlook for the eurozone and warned of higher inflation due to rising energy costs. The conflict is also impacting consumer sentiment in major economies like Germany.

Key market movements

By late trading, oil prices posted strong gains, while major stock indices in New York, London, Paris, Frankfurt, and Asian markets closed lower. Currency markets showed a stronger dollar, with the euro and pound weakening slightly against it.