Oil skyrockets and stocks plummet as Trump gives bombshell speech on Iran | World | News
Oil prices rose more than 5 percent and Asian stocks tumbled on Thursday after President Donald Trump vowed to hit Iran “extremely hard” over the next two to three weeks and “bring it back to the Stone Age.”
Although more than a month has passed since the first attacks of the USA and Israel, it remains unclear when the war will end. However, in his first national address on the conflict, Mr Trump declared that US military objectives in Iran had largely been met but signaled a new wave of intense attacks.
He added: “We’re going to hit them hard in the next 2-3 weeks. We’re going to bring them back to the Stone Age, where they belong.”
He offered no new details on reopening the Strait of Hormuz, a vital chokepoint for a fifth of global oil supplies that Iran has effectively closed, telling dependent countries instead to “seize it and treasure it.” He insisted that the United States no longer needed Middle Eastern oil. These statements dashed hopes that tensions would ease soon and caused Brent crude oil to jump above $106 per barrel and US crude oil to jump above $104.
This negativity was also reflected in the markets. Tokyo’s Nikkei 225 index fell 1.4 percent, South Korea’s Kospi index fell 3.4 percent and Hong Kong’s Hang Seng index fell 0.8 percent in early trading. US futures pointed to further losses. Analysts said the speech lacked any concrete exit strategy or plan to secure the strait, raising fears of prolonged supply disruptions.
In the UK, Energy Secretary Ed Miliband seized on the turmoil to renew his push for renewable energy. Mr Miliband said: “Recent events are a reminder that the only path to energy security and sovereignty for the UK is to break away from our dependence on fossil fuel markets and switch to clean energy that we control, based on domestic production.” Describing volatile oil and gas prices as a “fossil fuel casino”, Mr Miliband warned against gambling on geopolitical stability in an unstable world.
Bob McNally, president of Rapidan Energy Group and former White House adviser, called the situation “a five-alarm fire across the entire economy.” The lack of US commitment to secure the strait was the main trigger for the price increase. Mr. McNally asked: “If the United States isn’t going to secure the Strait of Hormuz, who is?”
In Asia, suffering appeared immediately. South Korean President Lee Jae-myung has called on lawmakers to approve a 26.2 trillion won (£14.5bn) supplementary budget, reimposed for the first time in 30 years, to cap fuel prices and distribute subsidies of up to 600,000 won (£330) to struggling households. Mr Lee said: “The crisis is not a temporary shower, but a major storm of unknown duration.”
In Thailand, diesel prices have risen to over 44 baht (£1.00) per liter following subsidy cuts; This was the second sharp increase in a week. US oil prices rose above $4 per gallon for the first time since 2022, and analysts warned of knock-on effects to food and transportation costs around the world.
Democrats in Washington criticized the address as “inconsistent.” Senator Mark Warner said Mr. Trump owed Americans answers on a conflict that has increased the prices of diesel, fertilizer and basic goods. Senator Chris Murphy added that no one knows whether the United States is escalating tensions.
Even those who once defended the President have now become critical. Former congresswoman Marjorie Taylor Greene, who recently broke away from the administration, slammed the focus on “WAR WAR WAR” while ignoring the “fuel crisis” affecting household bills. Ms. Greene shared: “You can’t gaslight people and tell them their bills are affordable.”
The Soufan Center, a New York think tank, accused Mr. Trump of leaving his Gulf Arab allies “in servitude” by appearing ready to move away from the strait while their economies depend on energy exports.
Takashi Hiroki, Monex’s chief strategist, caught the market’s mood: Investors looked for a clear timeline to ease tensions, which never materialized. Mr. Hiroki noted that Mr. Trump predicted confidence that the war would “end soon” even as he promised more destruction.
At a time when global energy prices are soaring and no immediate relief is in sight, the speech crystallized fears of a prolonged economic shock. Time will tell whether Mr. Trump’s aggressive stance will hasten a breakthrough or prolong the pain, but for now, markets have made up their minds.
