Stocks Fall, Oil Prices Jump: Trump Says Iran War To Continue

Washington (IANS): Global markets tumbled and oil prices surged today after US President Donald Trump signaled that the Iran conflict would persist for weeks. His remarks triggered immediate concerns regarding supply disruptions and prolonged economic fallout, according to American media reports.

Markets React to Escalation Warnings

US stock futures retreated sharply following the President’s address. According to The Wall Street Journal, The New York Times, and CNBC:

• S&P 500 futures dropped approximately 0.8%.

• Nasdaq futures lost around 1%.

• Dow futures fell by roughly 350 points.

Asian markets followed suit in early trading. South Korea’s Kospi plunged more than 2%, while Japan’s Nikkei declined as investors grew uneasy over the energy supply outlook.

Oil Surges Amid Supply Fears

Oil prices climbed sharply as traders processed Trump’s warning that the United States would hit Iran “extremely hard over the next two to three weeks” if the parties fail to reach a deal.

During and after the speech, the global benchmark rose more than 3%. In Asian trading, Brent crude surged past $105 per barrel. While Trump claimed the war is nearing completion, his signal of further military action heightened uncertainty and dashed investor hopes for a clear exit strategy.

Economic Impact and Inflation

The ongoing conflict continues to disrupt the Strait of Hormuz, a vital route for global oil shipments. Analysts warn that continued blockages will tighten global supply and keep prices elevated.

A report by Oxford Economics, cited by The New York Times, highlights the following risks:

• Supply Gap: The war has created a 10% shortfall between global oil supply and demand.

• Rationing: Emerging economies face a rising risk of “widespread rationing” and supply chain breakdowns.

• Consumer Pressure: US gasoline prices now exceed $4 per gallon, squeezing household budgets and businesses.

The Outlook

President Trump acknowledged the rising fuel costs but dismissed them as temporary, asserting that markets would stabilize once the conflict ends.

However, economists remain skeptical. Many have already revised growth forecasts downward, warning that a protracted conflict significantly increases the risk of a global economic slowdown.