Stocks Slide, Oil Prices Jump After Trump Signals Prolonged Iran Conflict
WASHINGTON — Global markets fell and oil prices surged after President Donald Trump indicated the conflict with Iran could continue for weeks, heightening concerns about energy supply disruptions and broader economic fallout.
U.S. stock futures declined following Trump’s remarks, with S&P 500 futures down about 0.8 percent, Nasdaq futures falling around 1 percent, and Dow futures dropping roughly 350 points, according to multiple media reports.
Asian markets also moved lower in early trading, reflecting investor unease. South Korea’s Kospi index dropped more than 2 percent, while Japan’s Nikkei also declined.
Oil prices climbed sharply as traders reacted to Trump’s warning that the United States would hit Iran “extremely hard over the next two to three weeks” if no agreement is reached.
The global benchmark rose more than 3 percent during and after the speech, with Brent crude topping $105 per barrel in Asian trading.
Investors had been looking for signs of de-escalation or a clearer path to ending the conflict. Instead, while Trump suggested the war could be nearing completion, he also signaled the possibility of further military action, adding to uncertainty over the timeline.
Markets remain closely focused on the Strait of Hormuz, a critical route for global oil shipments that has been disrupted during the conflict. Analysts warned that continued instability in the waterway could tighten global supply and keep prices elevated.
An analysis cited in reports estimated the war has already created a roughly 10 percent gap between global oil supply and demand, raising the risk of “widespread rationing” and supply chain disruptions, particularly in emerging economies.
Rising energy costs are also fueling inflation concerns. U.S. gasoline prices have climbed above $4 per gallon, adding pressure on households and businesses.
Trump acknowledged the increase in fuel prices but described it as temporary, saying markets would stabilize once the conflict ends.
Economists, however, warned the economic impact could be more prolonged, with some lowering growth forecasts and raising the risk of a slowdown if the conflict continues. (Source: IANS)
