Trump's Bold Claims on Iran Spark Oil Surge and Market Decline

In a recent address, President Donald Trump announced intensified military actions against Iran, leading to a significant rise in oil prices and a decline in global stock markets. His remarks, which included a promise to 'finish the job' in Iran, left investors seeking clarity on the conflict's resolution. As a result, oil prices surged over 7%, while major stock indices in Europe and Asia fell sharply. Analysts expressed disappointment over the lack of concrete details in Trump's speech, highlighting the market's desire for a clear ceasefire plan. This article explores the immediate economic impacts of Trump's statements and the ongoing volatility in the markets.

By Narendra Chaudhary Apr 2, 2026, 17:17 IST

Market Reactions to Trump's Address

Hong Kong: Following President Donald Trump's recent national address regarding the ongoing conflict with Iran, oil prices surged over 7%, while global stock markets experienced a downturn.

In his speech on Wednesday night, Trump asserted that the US would intensify its military actions against Iran, stating that the nation would soon 'finish the job' as key strategic goals were close to being achieved.

Trump declared, 'We will strike them very hard in the coming weeks, bringing them back to the Stone Ages where they belong.'

He refrained from discussing a deadline he had previously set for Iran to reopen the Strait of Hormuz, a vital route for global oil and gas shipments, despite earlier threats to target Iran's energy infrastructure if the strait remained closed. No clear solutions were provided to address the supply disruptions that have caused energy prices to spike.

In early trading across Europe, the UK's FTSE 100 dipped by 0.2% to 10,342.28, while France's CAC 40 fell by 0.8% to 7,917.81, and Germany's DAX dropped 1.6% to 22,935.01.

Asian markets also closed lower, with Tokyo's Nikkei 225 declining by 2.4% to 52,463.27. South Korea's Kospi fell 4.5% to 5,234.05, influenced by government data indicating a 2.2% rise in consumer prices in March due to escalating fuel costs.

Hong Kong's Hang Seng index decreased by 0.7% to 25,116.53, and the Shanghai Composite index also fell by 0.7% to 3,919.29.

Australia's S&P/ASX 200 saw a 1.1% drop, while Taiwan's Taiex was down by 1.8%.

US futures indicated a downward trend, with the S&P 500 futures losing 1.1% and the Dow Jones Industrial Average futures down by 0.9%.

In response to Trump's statements, oil prices surged significantly, with Brent crude climbing 7.4% to $108.69 per barrel, and benchmark US crude increasing by 7.1% to $107.24 per barrel.

Takashi Hiroki, chief strategist at Monex in Tokyo, noted that the market was underwhelmed by Trump's speech, which lacked the expected details regarding a resolution to the conflict with Iran. 'What the market seeks is a clear plan for a ceasefire,' he remarked.

Meanwhile, gold and silver prices experienced declines, with gold dropping 3.4% to $4,648.20 per ounce, falling below the $4,700 threshold, and silver decreasing by 6.2% to $71.39 an ounce.

Earlier optimism regarding a potential resolution to the Iran conflict had briefly boosted global stocks, following Trump's indication that military operations could conclude within two to three weeks.

On Wednesday, the S&P 500 rose by 0.7% to 6,575.32, the Dow Jones Industrial Average increased by 0.5% to 46,565.74, and the Nasdaq composite climbed 1.2% to 21,840.95.

In other early Thursday trading, the US dollar strengthened against the Japanese yen, rising to 159.59 from 158.