Oil prices jumped sharply, while global equities tumbled on Thursday after former US President Donald Trump reiterated threats to escalate military action against Iran. Speaking in his first prime-time address since the conflict began, Trump warned that US forces would “bring them back to the Stone Ages” over the next two to three weeks, but offered no immediate plan to reopen the Strait of Hormuz, which has severely disrupted global markets.
Investors reacted to the address with caution, noting that it added little new information to previous statements. Trump reaffirmed that US forces would achieve all battlefield objectives “very, very shortly,” yet failed to provide a clear timeline for ending the crisis. Analysts said the speech reinforced market uncertainty rather than easing it.
Following the address, Brent crude surged almost seven percent to $108.15 per barrel, while West Texas Intermediate (WTI) climbed more than six percent to $106.75. Markets had been temporarily buoyed by earlier optimism that the conflict might soon end, but Trump’s remarks underscored that significant volatility remains. Stephen Innes of SPI Asset Management noted that unfinished conflicts fuel market uncertainty, creating conditions for sudden spikes in commodities such as oil.
Global equities mirrored the caution in commodity markets. Seoul’s index, which had risen over eight percent on Wednesday, fell more than four percent, while Tokyo, Hong Kong, Shanghai, Mumbai, Singapore, Taipei, Bangkok, Jakarta, and Sydney all posted declines. London, Paris, and Frankfurt also closed lower. Michael Brown of Pepperstone observed that investors had hoped for more clarity, but the address offered no definitive end date for the hostilities.
The conflict has prompted governments worldwide to adopt emergency measures, while airlines have raised fares or cut routes due to heightened risks. South Korean President Lee Jae Myung announced a $17.2 billion supplementary budget, describing the economy as being on a “wartime footing.” Meanwhile, the World Bank expressed concern over inflation, food security, and employment, announcing a coordinated response with the IMF and International Energy Agency.
At 0810 GMT, key market indicators included: WTI up 6.2 percent at $106.31, Brent up 6.5 percent at $107.73; Nikkei 225 down 2.4 percent at 52,463.27; Hang Seng down 0.7 percent at 25,116.53; FTSE 100 down 0.3 percent at 10,332.99; Euro/dollar down to $1.1531; Pound/dollar down to $1.3216; and Dollar/yen up to 159.57.
