Trump sends major signals triggering a "massive shock" in financial markets! Bloomberg: Trump escalates threats of war against Iran

Hot Topics

Selected Stocks Data Center Market Center Capital Flows Simulated Trading

Client

Source: 24K99

On Thursday, April 2nd, U.S. Bloomberg reported that U.S. President Donald Trump stated that the war with Iran is “almost complete,” but he also hinted that short-term strikes might escalate.

(Image source: Bloomberg)

During a rare prime-time speech on Wednesday, Trump described the war as a success, saying that military operations have nearly achieved their objectives, including destroying Iran’s ballistic missiles and drones, air force, navy, and industrial infrastructure. He stated these actions will prevent Tehran’s proxy forces from destabilizing the region and cut off Iran’s path to nuclear weapons.

In a roughly 20-minute speech at the White House, Trump said, “Tonight, I am pleased to announce that these core strategic objectives are nearing completion.” He added, “We will complete this mission, and do so very quickly. We are very close.”

The speech comes as Trump seeks an exit strategy for a rapidly spiraling conflict.

However, some of his remarks did not reassure markets or suggest the war would end quickly; instead, they seemed to unsettle investors. Following Trump’s speech, crude oil prices rose, U.S. Treasury yields increased, the dollar strengthened, and U.S. stock index futures declined.

Trump also indicated that military actions could escalate soon, saying, “Within the next two to three weeks, we will send them back to the Stone Age where they belong.”

He hinted that diplomatic efforts would continue, adding, “Meanwhile, negotiations are still ongoing.” But if no agreement is reached, Trump threatened to “launch very fierce strikes on all their power plants, possibly simultaneously.”

Following these remarks, U.S. stock index futures extended losses, with Nasdaq futures down 0.8%; both WTI and Brent crude oil surged over 5% during the day. Spot gold prices fell to around $1,465 per ounce, dropping more than $100 intraday.

Rodrigo Catril, foreign exchange strategist at National Australia Bank Ltd., said Trump’s “escalation to de-escalation” strategy “carries risks.”

Catril stated, “The market seems to focus on the view that: the war is not over, the U.S. is seeking to escalate the situation, and hopes to pressure Iran into an agreement.”

The Strait of Hormuz, a critical passage for about one-fifth of global oil shipments, has been largely closed since the conflict erupted, becoming a major economic pain point. The situation has traders on edge, with international benchmark Brent crude rising about 60% since the start of the war, and U.S. gasoline prices surpassing $4 per gallon.

Trump insists that once the war ends, energy shocks will ease, but he did not specify how the U.S. plans to persuade Iran to reopen the strait. He urged allies dependent on Middle Eastern oil supplies to “keep a close watch on this passage.”

Trump said, “They must control it and cherish it.”

Bloomberg pointed out that Trump’s decision to address the nation highlights increasing pressure on him to clarify his war objectives to the American public.

To some extent, this speech resembled a presidential address at the start of a conflict rather than after more than a month of ongoing fighting. He began by saying he hoped to “explain why the ‘Epic Fury Operation’ is necessary for America’s security and the security of the free world.”