Instead of outlining a ceasefire, President Donald Trump promised fresh attacks in Iran over the next two to three weeks. His prime-time address revived fears of inflation and economic slowdown.
In his speech, Trump stated, “We are going to hit them extremely hard over the next two to three weeks. We’re going to bring them back to the Stone Ages, where they belong.” He did not mention a deadline for reopening the Strait of Hormuz.
The speech sent Brent crude oil up 6% to over $107 per barrel. US crude jumped 5% to $105.16.
Market reaction was immediate and negative. Tokyo’s Nikkei 225 fell 2%, while South Korea’s Kospi lost 4%. US futures dropped between 1% and 1.5%. Gold and silver prices also declined.