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Oil surges, stocks slide as Trump’s Iran war speech fails to reassure markets

By The South Asia Times

WASHINGTON - Global markets reacted sharply on Thursday after US President Donald Trump delivered a national address on the ongoing conflict with Iran, offering limited clarity on a path toward de-escalation, according to CNN.

Oil prices climbed while stock markets declined, as investors grew uneasy over the lack of a clear exit strategy and uncertainty surrounding the reopening of the strategic Strait of Hormuz, a vital artery for global energy supplies.

In his speech, Trump said the war was “nearing completion” but indicated that the United States could intensify its military operations over the next two to three weeks. The remarks, which echoed earlier messaging from the administration, failed to calm investor concerns.

Analysts said the absence of concrete details on how the conflict would end—or how disruptions to oil flows might be resolved—contributed to volatility in global markets.

Iran’s military dismissed Trump’s assertion that the country had been significantly weakened after more than a month of fighting. In a strongly worded response, Iranian officials warned that the United States and Israel would face “lasting regret and ultimate surrender,” signaling continued resistance.

The US approach has also drawn criticism from key allies. Emmanuel Macron described it as “unrealistic” to expect other countries to use force to reopen the Strait of Hormuz, accusing Trump of sending mixed signals on the conflict.

Meanwhile, fighting continued across the region. Iranian officials said joint US-Israeli strikes targeted one of the country’s oldest medical research facilities, raising concerns about civilian infrastructure.

In northern Israel, authorities reported dozens of rockets fired toward populated areas, underscoring the ongoing intensity of hostilities.

The escalating conflict and market instability have heightened fears of a broader regional crisis, with energy security and economic fallout at the forefront of global concerns.

With no clear resolution in sight, investors and world leaders alike are closely watching developments, as the trajectory of the conflict continues to shape both geopolitical dynamics and financial markets.