Trump's Statement on End of Iran War Calms Global Markets
Trump's Statement on End of Iran War Calms Global Markets
Global financial markets showed positive momentum after U.S. President Donald Trump stated that the war with Iran is "largely over". Investor optimism increased as oil prices declined and risk appetite returned to global markets.
The statement suggesting a possible end to the conflict helped ease geopolitical tensions and supported stock markets worldwide.
Falling Oil Prices Support Equity Markets
Optimism about a potential halt in military actions involving the United States and Israel reduced investor fears of a prolonged conflict in the Middle East. As a result, the drop in oil prices brought relief to global equity markets, which had previously been under pressure due to rising energy costs.
In a phone interview with CBS News, Trump said:
"In my opinion, the war is largely over. The opposing side has no navy, no communications, and no air force."
According to Trump, the United States is currently focused on ensuring the stability of global oil and energy supplies.
Strategic Importance of the Strait of Hormuz
The U.S. president also addressed the strategically important Strait of Hormuz, through which a significant portion of the world's oil supply passes.
Trump stated that Washington is considering measures to ensure control and security in the region. He also noted that some oil-related sanctions had been temporarily eased to help reduce global energy prices.
"I will not allow a terrorist regime to hold the world hostage and attempt to block global oil supplies. If Iran tries to do this, it will face a much stronger response."
Trump warned that if Iran attempts to block oil shipments through the Strait of Hormuz, the United States could respond with force significantly stronger than previous strikes.
Iran Rejects Claims of Conflict Ending
Meanwhile, officials from Iran rejected Trump's claims that the conflict is nearing its end.
A spokesperson for the Islamic Revolutionary Guard Corps stated that Iran continues to resist military actions by the United States and Israel and will determine when the conflict concludes.
As a result, despite the optimistic reaction in financial markets, geopolitical tensions in the region remain.
Market Reaction
Following Trump's statements, U.S. stock markets closed the trading session higher:
- Dow Jones Industrial Average rose 0.5%
- S&P 500 gained 0.83%
- Nasdaq Composite increased 1.38%
The yield on the 10-year U.S. Treasury bond stood at 4.12%, while the U.S. dollar index stabilized near 98.9.
Meanwhile, the price of Brent crude oil, which had previously approached $120 per barrel, dropped sharply after the statement and is currently trading around $90 per barrel.
Gold prices continued to rise, reaching approximately $5,171 per ounce, reflecting ongoing uncertainty in global markets.
European Markets Under Pressure
Despite gains in the United States, European stock markets ended the previous trading session in negative territory amid earlier spikes in oil prices and escalating tensions in the Middle East.
- FTSE 100 fell 0.34%
- CAC 40 declined 0.98%
- DAX 40 dropped 0.77%
- FTSE MIB decreased 0.29%
Shares of airline and mining companies were among the hardest hit. Stocks of Lufthansa fell by more than 6%, while Anglo American declined 3.2%.
Asian Markets Rise
Asian markets, meanwhile, posted gains as investors reacted positively to signs of possible de-escalation and strong macroeconomic data from China and Japan.
- Nikkei 225 rose 2.3%
- Hang Seng Index gained 1.6%
- Shanghai Composite increased 0.4%
- KOSPI surged 4.5%
Analysts note that Trump's statements have temporarily eased tensions in financial markets, although long-term risks related to the Middle East conflict remain.
