Financial markets worldwide took a downturn Thursday following President Trump’s prime-time television address, which dashed investor hopes for a swift resolution to the Iran conflict.
During his speech, Trump indicated the military operations would likely continue for another two to three weeks, providing limited new information about the situation. The president stated that U.S. forces had nearly accomplished their objectives in Iran but warned he would “hit them” in the coming weeks and “bring them back to the Stone Ages.”
The market response was swift and negative. Brent crude oil jumped back to nearly $109 per barrel, while West Texas Intermediate climbed just above $107. This represented a significant reversal from earlier gains.
Stock markets across Asia closed lower, with Japan’s Nikkei falling 2.4% and South Korea’s Kospi dropping 4.7%. European markets opened down approximately 1%, and U.S. stock futures pointed to losses before the opening bell.
Currency markets saw the dollar index climb back above the 100 level after two consecutive days of declines, as investors sought safe-haven assets. Gold retreated from the two-week peaks it reached Wednesday when there were brief signs of optimism. U.S. Treasury bonds also declined.
While Trump mentioned that “discussions are ongoing,” he provided few specifics regarding access through the strategically important Strait of Hormuz.
Investors are entering the extended Easter weekend with heightened anxiety about future developments. Adding to market concerns, the March U.S. employment report will be released on Good Friday, offering additional insight into any economic impact from recent events.
Despite the geopolitical tensions, early March economic indicators have shown more resilience than many analysts anticipated. The ISM manufacturing survey improved, consumer confidence rose unexpectedly, private sector job growth exceeded projections, and corporate earnings forecasts for the full year are actually rising.
The current economic picture shows significant input cost increases alongside robust business activity, which could keep central banks vigilant about monetary policy decisions.
In other business news, as NASA prepares for its first lunar mission in fifty years, Elon Musk’s SpaceX has submitted paperwork for an initial public offering that could potentially become the largest in history. This offering will test investor interest in high-profile risk assets amid current market uncertainty.
Additionally, Amazon is reportedly in discussions to acquire satellite telecommunications company Globalstar, according to the Financial Times. This move would advance Amazon’s efforts to develop its own low-earth-orbit satellite network to compete with SpaceX’s Starlink service.
Air travel to and from the United Arab Emirates continues to recover slowly from the initial impact of the Iran conflict, with Trump’s overnight comments suggesting the situation will persist for several more weeks.
Today’s key economic releases include weekly jobless claims and February trade balance data at 8:30 a.m. EDT, followed by remarks from Dallas Federal Reserve’s Lorie Logan at 10:15 a.m. EDT.
