Stocks Sink, Oil Leaps Above $100 As Trump Vows To Keep Hitting Iran

SINGAPORE, April 2 (Reuters) – MarketsoilAs the tension of the war continues on Thursday Iranian deepened with stocks sliding, oil The dollar, which rose above $100 per barrel, is strengthening after US President Donald Trump Embers Hopes for clarity on when the Middle East conflict might end have been dashed.

Embers He said in his prime-time speech that the USA would strike Iranian He called it “extremely difficult” within a few weeks, arguing that key military objectives were close to being met and the conflict was nearing its end. However, he did not set any timeline for the release. castleTo enable investors to estimate the scope and duration of the campaign.

The June LCOc1 front-month Brent contract rose more than 6% to $107.69 a barrel as investors found little reassurance in the speech, which did not specify when or how the Strait of Hormuz, a critical fuel shipping route, would reopen to ease supply disruptions. hit Asia is difficult.

“We don’t have any additional certainty or clarity on the timeline on that address, and that’s what the market was looking for,” said Jon Withaar, senior portfolio manager at Pictet Asset Management in Singapore.

“The fact that we can expect activity for another 2-3 weeks, the bots on the ground not being ignored and the reiteration of threats to infrastructure will put the market on the defensive again, especially as we get into the long weekend.”

U.S. stock futures EScv1 fell 1.3%, while European futures STXEc1 lost over 2%. Asia stocks Japan’s Nikkei .N225 index lost 2.4% and South Korea’s Kospi index .KS11 lost 4.7%.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down more than 2%, and nearly all regional bourses were in the red.

Possibility of an end to the month-long US-Israeli war Iranian removed globally stocks and after a brutal March in which the dollar rallied, it has driven the dollar off recent highs over the past two sessions. oil Prices put risky assets in a bind.

But immediately after the speech, investors went back to selling almost everything except the U.S. dollar and sending money. oil prices are higher.

With many global markets closed on Friday, risk aversion looks set to deepen ahead of the long weekend. Investors are likely to quickly reduce their risks on concerns that a prolonged disruption in shipping in the Strait of Hormuz will deal a harsh blow to global growth.

“The only thing that matters is whether the Strait of Hormuz will be opened soon. Embers“‘s talk doesn’t mean it could happen as quickly as markets expect,” said Prashant Newnaha, senior rates strategist at TD Securities.

Embers He said the US doesn’t need the key oil I believe this gateway will naturally open once the conflict ends.

Iranian Some of them repeatedly open fire on Gulf countries that host US bases and use the strait as leverage.

“His comments on the duration of other wars were remarkable; Iranian “It lasts a few months, not as long as previous wars,” Newnaha said.

“We are waiting for USD and oil To go higher as the risk decreases.”

Embers‘s comments also reignited concerns about stagflation, the toxic mix of high inflation and weak growth.oilMarkets in March.

Treasury yields rose in Asia on fears that rising inflation would close the door to the possibility of easing monetary policy. The yield on 10-year bonds US10YT=TWEB increased by 5 basis points to 4.376%.US/

The sell-off in the bond market is likely to continue in Europe, with German bond futures FGBLc1 and French OAT futures FOATc1 also pointing lower.

The US dollar has been investors’ haven of choice during the turmoil, and the dollar rose against most currencies following the speech. Euro EUR= decreased by 0.5% to $1.1533.

The dollar index =USD, which measures the U.S. currency against six other currencies, rose 0.5% to 100.05 after falling nearly 1% in the past two days on optimism that the war would end soon.

(Reporting by Ankur Banerjee in Singapore; Editing by Stephen Coates, Lincoln Feast and Shri Navaratnam)