Brent Crude Dips Below $100 as Trump Signals Iran War Could End

Global markets staged a significant relief rally on Wednesday, April 1, with Brent crude oil falling below $100 a barrel and equities surging on comments from former President Donald Trump suggesting the war with Iran could end within weeks The potential de-escalation of the conflict, which has choked off a major portion of global energy supply through the Strait of Hormuz, eased investor fears of a prolonged inflationary shock U.S. Treasuries also gained, pushing yields lower, as traders speculated that a resolution may pave the way for future interest rate cuts The rally was sparked by Trump telling reporters the conflict could end in "two to three weeks" This followed his confirmation of reports that he is open to ending the military campaign even if the Strait of Hormuz is not immediately reopened The Bank of England previously identified the war as a source of a potential "substantial negative supply shock" to the global economy However, uncertainty remains high. The Strait of Hormuz is still effectively closed, and a third U.S. aircraft carrier strike group is reportedly en route to the region Furthermore, some Wall Street analysts caution the equity market rebound may be driven more by the unwinding of extremely bearish positions than pure optimism over peace prospects