Trump’s threat to hit Iran 'extremely hard' jolts Asian stocks, U.S. futures and oil
Why it matters: Brent crude futures jumped 6.7% to $107.92 a barrel, impacting global energy costs.
- U.S. President Donald Trump threatened to hit Iran "extremely hard" over the next two to three weeks, aiming to bring them "back to the stone ages."
- Asian markets reversed earlier gains, with South Korea's Kospi plunging 5.5%, while Hong Kong and mainland Chinese markets opened in negative territory.
- U.S. stock futures for all three major indexes were down over 1%, and U.S. Treasury yields climbed 6 basis points to 4.384% on the 10-year notes, signaling a bond market sell-off.
- Oil prices saw significant swings, with Brent crude futures jumping 6.7% to $107.92 a barrel and U.S. West Texas Intermediate rising 6.2% to $106.39.
- Alicia Garcia Herrero, Chief Economist, Asia Pacific, Natixis, noted markets reacted negatively because Trump is sending more troops and a third aircraft carrier, making his "nearly over" claim hard to believe.
- Rachel Ziemba, founder of Ziemba Insights, warned that Trump's threats increase the risk of extensive damage to regional energy infrastructure, despite his "mission almost accomplished" declaration.
President Trump's threat to hit Iran "extremely hard" over the next two to three weeks, despite claiming "mission almost accomplished," sent shockwaves through global markets, with Asian stocks plunging and oil prices surging. Analysts like Alicia Garcia Herrero and Rachel Ziemba note the market's negative reaction stems from the perceived contradiction between Trump's words and the ongoing military buildup, suggesting a prolonged conflict and increased risk to energy infrastructure.
