These statements are interpreted as a negative factor for the stock market. Optimism had been rising in the days leading up to Trump's speech, after the president declared he expected the United States to end the war with Iran within two to three weeks. The change in tone in Trump's speech dampened hopes for a swift conclusion to the conflict, which has already shaken financial markets and led several stock indices into correction territory as investors reduce risk. In his nearly 20-minute speech, Trump outlined no change in policy toward Iran, nor did he provide details on how operations would be carried out beyond what he had said previously. In a speech from the White House, Trump stated that key strategic objectives are nearing completion. U.S. Treasury bonds fell due to inflation concerns, and precious metals declined. “Trump’s speech was not what the market was expecting: signals that pointed to the end of the conflict,” said Jumpei Tanaka, director of investment strategy at Pictet Asset Management Japan Ltd. “Instead, it suggested a possible escalation.” Oil prices rose, while stocks and bonds fell after President Donald Trump warned that the United States would hit Iran “with extreme force” in the next two or three weeks, undermining expectations of an imminent resolution to the five-week-old Middle East conflict. Brent crude rose 5 percent, surpassing $106 a barrel, due to the effective closure of the Strait of Hormuz, a key shipping lane for Middle East exports, which reduced supply. However, the president hinted that military operations could intensify soon, declaring: “In the next two or three weeks, we’re going to send them back to the Stone Age, where they belong.” The unusual primetime speech came as the president desperately sought a way out of a conflict that has quickly spiraled out of his control. “The market was craving clarity on when the conflict will end, but this speech has only increased uncertainty,” said Nick Twidale, chief market analyst at AT Global Markets. The U.S. president affirmed that the Strait of Hormuz would reopen “naturally” once hostilities ceased, offering no details or a precise timeline. Stocks fell after Trump’s speech, which halted a nascent global rally, amid growing concerns that a prolonged war would keep oil prices high and weigh on economic growth. An Asian stock index fell 2.1 percent, while futures for U.S. and European stock indices dropped more than 1.2 percent, indicating it is unlikely that the two-day advance in global stocks, fueled by hopes of de-escalation, will be sustained. The dollar strengthened, reinforcing its appeal as a safe-haven asset during the war. “It’s clear that investors are unimpressed, and I think we could see further declines in global markets today.”
