Global oil prices surged sharply on Thursday while major stock markets across Asia and Europe declined after U.S. President Donald Trump indicated that American military operations against Iran could continue for another two to three weeks, heightening fears of extended disruption to critical energy supplies.
In his first prime time address to the nation since the conflict erupted, Trump spoke from the White House with a firm tone. He vowed that U.S. forces would press ahead with intensified strikes, declaring they would meet all key battlefield objectives “very, very shortly.” He also warned that Iran risked being pushed “back to the Stone Ages, where they belong.”
Notably, the president offered no detailed plan to resolve the ongoing closure of the Strait of Hormuz, the vital chokepoint responsible for a significant portion of global oil and liquefied natural gas shipments. Instead, he repeated calls for nations reliant on the waterway to take responsibility themselves, urging them to “get your own oil.”
The speech disappointed investors who had begun pricing in hopes of a quicker resolution. Earlier optimism faded as the address emphasised continued military action over de escalation or diplomatic breakthroughs, triggering immediate volatility in financial markets.
Oil benchmarks climbed steeply in response. Brent crude rose nearly seven per cent at one point, trading around $108 per barrel, while West Texas Intermediate WTI gained more than six per cent. The move reflected renewed concerns over prolonged supply constraints rather than any fresh escalation on the ground.
Equity markets felt the pressure. In Asia, Japan’s Nikkei 225 fell 2.4 per cent to close at 52,463.27, while South Korea’s Kospi shed more than four per cent, reversing much of the previous day’s strong gains.
Hong Kong’s Hang Seng Index dropped 0.7 per cent to 25,116.53, and China’s Shanghai Composite declined 0.7 per cent to 3,919.29.
Other Asian bourses in Mumbai, Singapore, Taipei, Bangkok, Jakarta, and Sydney also posted notable losses. In Europe, London’s FTSE 100 eased 0.3nper cent to 10,332.99, with markets in Paris and Frankfurt similarly lower.
Analysts highlighted the speech’s lack of new information on ending the conflict. Stephen Innes of SPI Asset Management described the message as one of “unfinished business,” noting that such uncertainty acts as “oxygen for volatility” in markets. Oil surged, he explained, once the premature expectation of a swift end to the war was challenged.
Michael Brown at Pepperstone added that investors had hoped for clearer signals, including a more definitive timeframe. He likened risk assets to a “coiled spring” ready to rally on positive news, but cautioned that the war continues, commodity supplies remain tight, and the full macroeconomic effects are still unfolding.
The Strait of Hormuz has been at the centre of market anxiety since the U.S. Israeli campaign against Iran began on February 28. Iran has kept the route largely closed to its adversaries, disrupting global energy flows. Trump’s repeated suggestion that affected countries should secure the waterway themselves has added complexity to diplomatic efforts.
On Thursday, the United Kingdom is hosting a meeting of approximately 35 nations to explore diplomatic and political options for restoring freedom of navigation, safeguarding trapped ships and crews, and resuming the movement of essential commodities. UK Prime Minister Keir Starmer said the gathering would assess all viable measures to ease the crisis.
The broader economic implications are raising alarms worldwide. Higher energy costs threaten to fuel inflation, affect jobs, and undermine food security. World Bank Managing Director Paschal Donohoe voiced serious concern and announced closer coordination with the IMF and International Energy Agency to support response efforts.
In South Korea, President Lee Jae myung proposed a $17.2bn supplementary budget, warning that the government must treat the economy as if it were on a “wartime footing.”
With the conflict now in its second month, global markets remain highly sensitive to developments from Washington and Tehran. Trump’s latest remarks have underscored that a swift and clean resolution is not yet in sight, leaving investors braced for continued volatility and potential economic headwinds.
