Volkswacht Bodensee - Oil prices slump after Trump eases concerns over Iran

International oil benchmarks Brent North Sea crude and West Texas Intermediate slumped over four percent after Trump on Wednesday said he would "watch it and see" on possible intervention in the Islamic republic.

Trump added that he had been told that the killings of protesters there had stopped.

Crude prices had surged over recent days as Trump talked about coming to the aid of the Iranian people over the crackdown on demonstrations, sparking concerns over possible disruption to global supplies.

"As tensions are dialled down between Iran and the US, the political risk premium is rapidly getting priced out of the oil price," said XTB research director Kathleen Brooks.

Meanwhile the price of silver plunged more than seven percent in Asian deals after hitting a record high above $93.75 an ounce after Trump also held off slapping tariffs on critical minerals.

"The decision reduced part of the near-term policy risk premium that had propelled silver to record levels," said commodities strategist Ewa Manthey at ING bank.

Despite the correction, silver prices remain more than 25 percent higher year-to-date, highlighting the strength of underlying demand, she noted.

The price of gold, which has hit multiple record highs in recent months thanks to its status as a safe haven investment, posted only a small dip on Thursday.

In stock market trading, a forecast-busting fourth-quarter net profit by Taiwanese chipmaking titan TSMC helped turn around investor sentiment.

The tech-heavy Nasdaq Composite index rose nearly one percent in New York.

"A strong set of results from Taiwan Semiconductor Manufacturing Company quickly shifted the mood, reminding markets that enthusiasm around artificial intelligence and long-term growth themes remains very much alive," said Forex.com analyst Fawad Razaqzada.

He noted that technology stocks had looked vulnerable in recent weeks as investors shifted funds into other sectors.

Labor Department data showed that first-time unemployment claims dipped back under 200,000 last week in the United States.

"The key takeaway from the report is that it corroborates a low firing-low hiring environment that will keep the Fed on watch but also on hold in terms of a rate cut this month and possibly until June," said Briefing.com analyst Patrick O'Hare.

With US inflation continuing to run higher than its target rate of two percent and both the labour market and overall economy holding up, Federal Reserve policymakers have indicated they will likely hold off cutting rates at this month's meeting.

In European trading, London's top-tier FTSE 100 index hit a fresh record high after official data showed Britain's economy rebounded in November.

Frankfurt rose as traders reacted to news that Germany's economy eked out meagre growth in 2025, dodging a third straight year of recession.

The Paris stock market fell slightly, dragged down in part by a drop in the share price of TotalEnergies in the wake of oil's retreat.

In Asia, Tokyo closed down 0.4 percent, cooling off after gains fuelled by speculation that Prime Minister Sanae Takaichi would call an election to capitalise on strong public approval ratings.

- Key figures at around 1630 GMT -

Brent North Sea Crude: DOWN 4.3 percent at $63.64 per barrel

West Texas Intermediate: DOWN 4.5 percent at $59.08 per barrel

New York - Dow: UP 0.8 percent at 49,542.83 points

New York - S&P 500: UP 0.7 percent at 6,973.51

New York - Nasdaq Composite: UP 0.9 percent at 23,685.90

London - FTSE 100: UP 0.5 percent at 10,238.94 (close)

Paris - CAC 40: DOWN 0.2 percent at 8,313.12 (close)

Frankfurt - DAX: UP 0.3 percent at 25,352.39 (close)

Tokyo - Nikkei 225: DOWN 0.4 percent at 54,110.50 (close)

Hong Kong - Hang Seng Index: DOWN 0.3 percent at 26,923.62 (close)

Shanghai - Composite: DOWN 0.3 percent at 4,112.60 (close)

Euro/dollar: DOWN at $1.1610 from $1.1647 on Wednesday

Pound/dollar: DOWN at $1.3389 from $1.3433

Dollar/yen: DOWN at 158.47 yen from 158.56 yen

Euro/pound: UP at 86.70 pence from 86.68 pence

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