Oil jumps 6% as Asian stocks slide after Trump Iran pledge

Oil prices jumped more than 6% and Asian equities fell Thursday after U.S. President Donald Trump vowed in a national address to hit Iran very hard, lifting Brent to $108.15 a barrel and West Texas Intermediate to $106.55. Japan’s Nikkei 225 dropped 2.4%, and South Korea’s Kospi fell 4.5%.

In his first national address since the Iran war began, Trump stated that U.S. forces would strike Iran “extremely hard over the next two to three weeks” and that “core strategic objectives are nearing completion.” He asserted the United States would “finish the job” soon. He did not reference an earlier deadline for Iran to reopen the Strait of Hormuz or outline steps to restore disrupted energy flows.

Following the speech, Brent rose 6.9% to $108.15 per barrel and WTI advanced 6.4% to $106.55, reflecting ongoing supply risks linked to the strait and potential damage to energy infrastructure.

Regional markets were broadly lower. The Nikkei 225 closed at 52,463.27. The Kospi ended at 5,234.05 after data showed South Korea’s consumer prices increased 2.2% in March from a year earlier on higher fuel costs. Hong Kong’s Hang Seng slipped 1.3% to 24,965.07, the Shanghai Composite eased 0.9% to 3,913.88 and Australia’s S&P/ASX 200 fell 1.1% to 8,579.50. Taiwan’s Taiex traded 1.8% lower, and India’s Sensex declined 1.9%. U.S. equity futures were down more than 1.2%.

Safe-haven metals weakened. Gold dropped 4% to $4,621.30 an ounce, while silver fell 7.3% to $70.53. In currency trading, the dollar strengthened to 159.35 Japanese yen from 158.82, and the euro edged down to $1.1534 from $1.1589.

Market reaction pointed to a lack of clarity on next steps, according to Takashi Hiroki, chief strategist at Monex in Tokyo:

“The speech President Trump made was far less than what the market expected. There were no concrete details about the end of the hostilities with Iran. What the market wants is a clear outline for the ceasefire.”

Global stocks had firmed on Wednesday after comments late Tuesday that operations could conclude within two to three weeks. In the United States, the S&P 500 rose 0.7% to 6,575.32, the Dow Jones Industrial Average added 0.5% to 46,565.74 and the Nasdaq Composite gained 1.2% to 21,840.95. Shares of Eli Lilly climbed 3.8% after the U.S. Food and Drug Administration approved its GLP-1 pill for weight loss, while Nike slumped 15.5% on expectations for weaker sales despite beating quarterly profit estimates.

Investors are watching for any update on reopening the Strait of Hormuz, a major route for global oil and gas shipments, and for clearer signals on the timing and scope of U.S. military operations.