Global stock markets experienced significant volatility Monday, March 23, 2026, before largely rebounding following an announcement from U.S. President Donald Trump regarding potential de-escalation in the Middle East. The initial downturn reflected investor concerns over Trump’s prior threats to Iran, but a shift in tone led to a recovery across European exchanges.
European shares initially fell sharply after Trump threatened to “obliterate” Iran’s power plants if the Strait of Hormuz was not reopened within 48 hours. However, markets reversed course after Trump stated that the U.S. And Iran had engaged in “very good and productive conversations” regarding a potential resolution to hostilities.
The French CAC 40, the Spanish IBEX, and the German DAX all rose by 1%, 1.4%, and 1.9% respectively, after opening lower. The FTSE 100 initially fell nearly 1.5% but recovered to gain 0.4%, before settling to a 0.2% decline. The IBEX 35 specifically rose to 16,900 points following the announcement of conversations with Iran, according to reports.
Oil prices, which had surged on fears of disruption to the crucial Strait of Hormuz, as well saw a sharp decline. Brent crude, the international benchmark, fell 7% to $103 a barrel. UK month-ahead gas prices decreased by 5.1% to 144p a therm. Trump indicated he was postponing attacks on Iranian power plants for five days to allow for continued dialogue.
The S&P 500 rose 1.5% toward its best day since the beginning of the conflict, after falling earlier in the day. The price for a barrel of Brent crude fell 10% to $100.96, down from nearly $120 last week. This market reaction underscores investors’ sensitivity to geopolitical risks and their impact on global energy supplies.
However, Iranian state media cited Iranian officials denying the existence of the talks described by Trump, stating that the U.S. President had backed down “following Iran’s firm warning.” Despite this conflicting information, the initial market response was positive.
The initial market downturn saw Asian markets also suffer losses, with the Nikkei Japanese index falling 3.4%, the Hang Seng of Hong Kong dropping 4%, and the Kospi of South Korea declining 6.5%. The IBEX 35 had opened the session with a 2% fall, reaching a low of 16,378 points, before the shift in sentiment.
Arcelor, IAG, and Santander were among the best-performing stocks on the IBEX 35, contributing to the overall market recovery. Banco Huge analyzed the market shift following Trump’s announcement, noting the positive impact on investor confidence.
