Oil prices surged while global equities declined after Donald Trump indicated that the ongoing Iran conflict may continue, dampening hopes of a near-term resolution.
In a televised address from the White House, Trump said key US objectives in the conflict were “nearing completion” but stopped short of providing a timeline for reopening the crucial Strait of Hormuz.
He also urged countries dependent on Middle East oil to take the lead in securing the route, stating that the United States does not rely heavily on energy supplies from the region.
Following the remarks, Brent crude prices jumped 4.8 per cent to $106.02 per barrel, while West Texas Intermediate rose about 4 per cent to around $104, reflecting concerns over prolonged supply disruptions.
Analysts said the sharp rise in oil prices signalled a reversal of earlier optimism around a possible ceasefire, with markets now bracing for extended instability in energy supplies.
Equity markets reacted negatively, with major Asian indices falling after the address. Japan’s Nikkei 225 declined 1.9 per cent, South Korea’s Kospi dropped 3.5 per cent, and Hong Kong’s Hang Seng Index slipped about 1 per cent.
US stock futures also pointed to a weak opening, with Dow Jones and S&P 500 futures down around 1 per cent, and Nasdaq futures falling 1.4 per cent.
Market participants said the absence of clarity on reopening the Strait of Hormuz and signals of a prolonged conflict have heightened uncertainty, particularly for energy-dependent regions such as Asia.
