Oil surged over 4% and Asian stocks tumbled after U.S. President Donald Trump delivered his first national address since the Iran conflict began.
Trump stated the U.S. would "hit them extremely hard" over the next few weeks and claimed that military objectives in Iran are nearing completion.
He did not specify a timeline for reopening the Strait of Hormuz, a critical shipping lane for global oil.
Asian markets reacted sharply:
- Tokyo’s Nikkei 225 dropped 1.9%
- South Korea’s Kospi fell 3.6%
- Hong Kong’s Hang Seng declined 0.9%
- Shanghai Composite slid 0.5%
- Australia’s S&P/ASX 200 dropped 0.6%
- Taiwan’s Taiex was down 1.1%
Brent crude jumped 4.9% to $106.16 a barrel, while U.S. crude rose 4% to $104.15.
Market analysts expressed disappointment, citing lack of clarity on how the conflict might end.
Gold fell 2% to $4,718.70 an ounce, while silver dropped 4.9% to $72.39 an ounce.
In U.S. markets, the S&P 500 gained 0.7%, the Dow rose 0.5%, and the Nasdaq climbed 1.2%.
Eli Lilly shares rose 3.8% after FDA approval of its weight-loss drug; Nike shares plunged 15.5% despite strong earnings.
The U.S. dollar strengthened to 159.37 yen, while the euro fell to $1.1545.