Trump (R) is Losing His sway over Financial Markets, with His Latest Claims of Iranian Peace Talks Failing to Soothe Oil Prices and Stocks. Brent Crude Oil climbed as much as 3.3pc on 3/27/2026, to more than $111 a Barrel despite Trump Announcing a 10-day Extension of Negotiations between Washington and Tehran.
Global Stocks also Continued their Slump, even after Trump’s Post on Truth Social, Claiming that Talks with Iran were “going very well”. The Tech-Heavy Nasdaq Composite Index has Fallen 10pc since the Beginning of the War, while the S&P 500 on Wall Street Plunged to a Six-Month Low on 3/27/2026. The FTSE 100 is On-Track for its Worst Month since the Pandemic, Down nearly 9pc so far in March.
It marks a Significant Break from how Markets have Reacted to Trump’s Pronouncements on the Future of the War so far. On 3/8/2026, after Trump said High Oil Prices were “a very small price to pay U.S.A., and World, Safety and Peace”, Oil Surged as High as $120 a Barrel as Traders took that to mean a Protracted Conflict was Likely.
On 3/23/2026, Oil Prices Plummeted by 15pc after Trump Announced a Five-Day Suspension of Hhis Promise to “Obliterate” Iran’s Power Plants, Raising Hopes of a Path to Peace. However, Traders are Beginning to Doubt the Ability of the U.S. to Reach a Deal with Tehran and Reopen the Strait of Hormuz, which is Crucial to a Fifth of the World’s Energy Supplies.
Jordan Rochester, the Executive Director of Mizuho Bank, said the Focus for Traders had Switched from the Taco (Trump always chickens out) Trade, to Nacho (“Not actually changing hormuz opening”). The Extension of Talks “does not fix the problem that builds day by day with the Strait of Hormuz being closed”, He said.
“It also gives the market a higher sense of confidence this war will continue for ‘at least’ 10 more days, as we know negotiations rarely end early, with the final scrabble of diplomacy where the real compromises are made.” Jim Reid, an Analyst at Deutsche Bank, said Only a “mini easing of the market tension” had Occurred after Trump’s 10-Day Extension of Talks was Announced.
“While the delay might reduce some of the immediate escalation risk, it offers no new visibility on the path towards resolution, given Iran’s denials over talks, and while the Strait of Hormuz remains largely closed,” He said. He Added that a “risk premium was beginning to be added in markets before weekends to cover for potential turmoil.”
On Friday, the U.S. was considering Sending 10,000 more Troops to the Region, Supported by Fighter-Jet Squadrons and Armoured Vehicles. Neil Crosby, of Oil Analysts Sparta, suggested that Traders were “all too aware of the build up of US military power, Iranian intransigence, and the ‘tendency’ towards a flurry of events over the weekend when markets are closed”.
City Analysts Interpreted Trump’s Extension of the Talks as further Proof that the U.S. President is Feeling the Pressure from Declining Stocks and Surging Oil Prices. Deutsche Bank has Created an Index to Chart the Pressure on the U.S. Administration, Combining Changes in the President’s Approval Rating, Inflation Expectations, the Performance of the S&P 500 and U.S. Treasury Bond Yields.
The Index hit a Record High this Week, Eclipsing Past Peaks seen before Trump’s Clim-Ddown on His “liberation day” Tariffs in 2025 and His Push to take Control of Greenland earlier this year. Michael Brown, an Analyst at Pepperstone, said: “Call me a Cynic, but the Latest ‘Taco’ coming just 11 minutes after the S&P had Closed-Out its Worst Day since the Conflict Began on 3/26/2026, having Notched a Loss of 1.7pc on the Day, is surely Not a Coincidence.

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