Oil prices surged, and Asian equities declined after Donald Trump signalled the US would continue to strike Iran “extremely hard.”
In a Wednesday night address, Trump said the US would “finish the job” soon, adding that core strategic objectives were nearing completion and military operations could conclude in the coming weeks.
However, markets weakened amid concerns that the conflict could end without a deal to reopen the Strait of Hormuz, a key route for roughly a fifth of global oil and gas shipments.
In Asia, Japan’s Nikkei 225 fell 2.6% to 52,333.79, while South Korea’s Kospi dropped 5.2% to 5,191.62. Hong Kong’s Hang Seng declined 1.4% to 24,932.81, and China’s Shanghai Composite slipped 1.1% to 3,903.98. Australia’s S&P/ASX 200 lost 1.1%, while Taiwan’s Taiex was down 1.8%.
Oil markets moved sharply higher, with Brent crude rising 6.6% to nearly $108 a barrel. In contrast, precious metals came under pressure, with gold falling 2% to $4,718.70 per ounce and silver dropping 4.9% to $72.39.
The shift follows a more positive session on Wednesday, when hopes of a near-term end to the Iran conflict lifted global equities. The S&P 500 gained 0.7% to 6,575.32, the Dow Jones Industrial Average rose 0.5% to 46,565.74, and the Nasdaq Composite advanced 1.2% to 21,840.95.
