Global financial markets reacted sharply after U.S. President Donald Trump delivered a national address on Wednesday evening, stating that the United States will 'hit Iran extremely hard' and expects military operations to last another two to three weeks, with the aim to 'finish the job' as core strategic objectives near completion [1][2]. Trump’s remarks did not include concrete details about a ceasefire or a clear path to ending supply disruptions, particularly regarding the reopening of the Strait of Hormuz, a critical waterway for global oil and gas transport [1].
Oil prices surged following Trump's speech, with Brent crude jumping 6.9% to $108.15 per barrel and U.S. benchmark crude rising 6.4% to $106.55 a barrel [1]. According to [2], Brent crude traded at $107.98, and over the course of March, it surged more than 60%, marking the biggest monthly price gain since the 1980s. The escalation in oil prices is attributed to the ongoing U.S.-Iran conflict, which began with strikes on Iran on February 28 and has since triggered retaliatory actions across the Gulf [2].
Stock markets across Asia and Europe experienced significant declines. Tokyo’s Nikkei 225 fell 2.4% to 52,463.27, South Korea’s Kospi lost 4.5% to 5,234.05, Hong Kong’s Hang Seng dropped 1.3% to 24,965.07, and the Shanghai Composite index was down 0.9% to 3,913.88 [1]. Australia’s S&P/ASX 200 declined 1.1% to 8,579.50, Taiwan’s Taiex was 1.8% lower, and India’s Sensex lost 1.9% [1]. European futures also pointed to a lower open, with Stoxx 50 futures down 2%, FTSE 100 futures down 0.9%, and DAX futures shedding 1.9% [2]. U.S. futures were down more than 1.2% [1][2].
Gold and silver prices fell, with gold down 4% to $4,621.30 per ounce and silver losing 7.3% to $70.53 an ounce [1]. The U.S. dollar strengthened against the Japanese yen, rising to 159.35 from 158.82, while the euro weakened to $1.1534 from $1.1589 [1].
In corporate news, Eli Lilly shares jumped 3.8% after FDA approval of its GLP-1 pill for weight loss, while Nike plunged 15.5% despite better-than-estimated quarterly profit due to expectations of weaker sales [1]. British oil major Shell is reportedly in talks with Venezuela to develop four large offshore natural gas fields [2]. Ryanair CEO Michael O'Leary warned that the U.K. is particularly vulnerable to jet fuel shortages as the Iran war continues, due to reliance on supplies from Kuwait [2]. The Trump administration is reportedly preparing new tariffs on pharmaceutical companies that have not guaranteed low drug prices in the U.S., according to Bloomberg [2].
Analyst Takashi Hiroki of Monex in Tokyo noted market disappointment with Trump’s speech, citing the lack of concrete details about ending hostilities with Iran and the absence of a clear outline for a ceasefire [1].
CONCLUSION
President Trump's vow to intensify strikes on Iran has triggered a surge in oil prices and broad declines in global equities, reflecting heightened uncertainty and supply disruption fears. The lack of clarity on a ceasefire or resolution has disappointed markets, while new U.S. policy moves and corporate developments add further volatility. The ongoing conflict and its impact on energy and financial markets are expected to remain a key focus for investors in the coming weeks.