Asian Markets Reverse Gains as Oil Prices Spike After Trump Speech
Asia-Pacific markets fell sharply on Thursday, reversing earlier gains after U.S. President Donald Trump signaled intensified military action in Iran, triggering a surge in global oil prices and renewed investor uncertainty.
In a 19-minute national address, Trump said U.S. objectives in Iran were “almost met” but warned that Washington would strike Iran “extremely hard” over the next two to three weeks. He also asserted that the United States “has all the cards” in the conflict.
Oil Prices Jump Amid Escalation
Oil markets reacted immediately to the remarks. U.S. crude futures surged 6% to $106.39 per barrel, while global benchmark Brent crude climbed 6.7% to $107.97, reflecting fears of prolonged supply disruptions.
Trump reiterated that any ceasefire discussions would depend on securing the Strait of Hormuz, a critical artery for global oil shipments.
Regional Markets in Decline
Across Asia, major stock indices posted notable losses:
- South Korea’s Kospi dropped 4.47%, while the Kosdaq fell 5.36%
- Japan’s Nikkei 225 declined 2.38%, with the Topix down 1.61%
- Australia’s S&P/ASX 200 slipped 1.06%
- Hong Kong’s Hang Seng index fell around 1%
- China’s CSI 300 lost 1.04%
- India’s Nifty 50 and Sensex dropped over 1% each
Markets had initially opened higher but reversed course following Trump’s speech, highlighting investor concerns over the trajectory of the conflict.
Investor Concerns Grow
Analysts pointed to a disconnect between Trump’s optimistic timeline and ongoing military buildup in the region.
“Markets reacted negatively because, while Trump says it is nearly over, he is sending more military assets, making it difficult to believe the conflict will end soon,” said Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis.
Wall Street Futures Signal Weakness
U.S. stock futures also declined, with S&P 500 and Nasdaq-100 futures falling more than 1%, and Dow futures dropping nearly 439 points.
The downturn comes despite gains on Wall Street a day earlier, where the S&P 500 rose 0.72%, the Nasdaq gained 1.16%, and the Dow Jones Industrial Average climbed 0.48%.
Outlook: Volatility Ahead
With oil prices rising and geopolitical tensions escalating, markets are expected to remain volatile. Investors will closely watch developments in the Iran conflict, particularly any signs of escalation or progress toward a ceasefire.
