Trump's Grip on Markets Falters as Oil Prices Surge Amid Ongoing Tensions

The market's reaction to Trump's latest move has been muted, with investors increasingly desensitized to his rhetoric. Despite extending the pause on planned strikes against Iran's energy infrastructure, oil prices have continued to surge, climbing a further 4% in Friday's session.

The German DAX index and US index futures fell sharply as risk appetite soured, while the EUR/USD forecast remains tilted to the downside amid concerns over the war's impact on economies of energy importers.

Market analyst Fawad Razaqzada notes that investors are now waiting for tangible proof before reacting to Trump's statements, rather than taking them at face value. This has led to a reduction in the immediate risk of tit-for-tat escalation, but underlying concerns remain firmly in place.