Trump told U.S. military leaders to cancel a scheduled attack on Iran after requests from regional leaders, according to a Truth Social post on Tuesday. The decision sent oil prices lower, with Brent crude futures falling 1.04% to $110.93 per barrel.
The move came as Europe assessed geopolitical fallout from Middle East tensions. The pan-European Stoxx 600 closed up 0.7%, with major bourses in London, Paris, Frankfurt, and Milan all posting gains. Defense stocks rallied on the news, with Saab shares jumping 4.3% after Sweden announced plans to buy navy frigates from France.
Meanwhile, Russian President Vladimir Putin arrived in Beijing for a summit with Chinese President Xi Jinping, adding another layer to the geopolitical complexity as the U.S. de-escalates with Iran.
The G7 finance ministers and central bankers concluded their meeting in Paris on Tuesday, dominated by discussion of the Iran situation and broader economic shocks rippling through global markets.
