US President Donald Trump's prime-time address on the Iran war triggered volatile reactions in global markets, with oil prices surging and stock futures declining. Brent crude climbed over 4% to $106 per barrel, while West Texas Intermediate (WTI) rose 3% to $103 after Trump urged nations to secure the Strait of Hormuz or buy oil from the US. The president claimed progress in military objectives but extended the timeline for US involvement to two to three weeks, disappointing investors hoping for de-escalation.
Key Developments:
- Oil prices rebounded sharply after Trump's speech, reversing earlier losses.
- Stock markets fell as uncertainty persisted over the war's duration and economic impact.
- Trump proposed two solutions for nations facing fuel shortages: purchasing US oil or securing the Strait of Hormuz themselves.
Market Reactions:
- Brent crude futures dropped to $100 before Trump's address, then surged 4.74% to $106.
- WTI crude fell to $98.71 before rising 3.80% to $103.9.
- Stock futures turned negative, with the Dow, S&P 500, and Nasdaq all declining.
Trump's Address:
The president outlined three core objectives: dismantling Iran's missile and naval capabilities, preventing proxy destabilization, and blocking nuclear weapons development. He described recent military actions under Operation Epic Fury as decisive but warned of continued fighting. Trump also blamed Iran for rising gasoline prices, which hit a national average of $4.06 per gallon.
Global Implications:
- The Strait of Hormuz, a critical oil transit route, remains largely closed, exacerbating supply disruptions.
- European allies expressed concern over Trump's remarks, including his suggestion that NATO members should secure their own oil.
- Iran rejected Trump's claims of seeking a ceasefire, intensifying regional tensions.
Economic Outlook:
Trump predicted lower gas prices once the Strait reopens but offered no immediate assurances. Analysts warned of prolonged uncertainty, with markets reacting defensively to the extended war timeline.