Global stock markets rose sharply Thursday following President Trump’s announcement that he called off retaliatory military strikes against Iran. The decision came amid escalating tensions following Iran’s downing of a US drone. The dollar and bond yields subsequently declined, indicating investor risk appetite increased. Oil futures also fell as the prospect of military conflict diminished, easing concerns about supply disruptions. Trump indicated openness to negotiations with Iran, suggesting a potential path toward a diplomatic resolution. Analysts attribute the market reaction to a collective relief that a wider conflict may have been averted, at least temporarily. The MSCI’s global equities index led the gains, reflecting the positive sentiment.