Oil prices tumbled on Monday after President Trump said he would postpone imminent attacks on Iranian energy infrastructure amid "productive conversations" aimed at resolving the three-week-old U.S.-Israeli war on Iran. (Iranian officials denied the existence of talks.)
Stocks surged on Monday, but some experts were wary of piling into the latest "TACO trade" without more details
Oil prices plummeted Monday after President Donald Trump said on Truth Social that he had delayed attacks on Iranian energy infrastructure after a weekend of “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.”
The price of Brent crude, the global crude oil benchmark, tumbled as much as 10% after Trump’s announcement. A single barrel, at $114 overnight, was recently around $102.
“The TACO trade is in full effect this morning,” wrote Jay Woods, chief market strategist at Freedom Capital Markets. TACO refers to “Trump always chickens out,” a phrase and acronym coined last year to describe the president’s habit of moderating his positions, primarily on trade, in response to chaos in financial markets. As in past TACO reversals, stocks were sharply higher Monday. (Follow our live markets coverage here.)