Oil jumps, stocks retreat after Trump signals prolonged Iran conflict

Oil prices climbed sharply while global stock markets declined after Donald Trump addressed the ongoing Iran conflict in a televised speech from the White House.

In his remarks, Trump stated that key objectives in the conflict were “nearing completion,” but he did not provide a clear timeline for reopening the Strait of Hormuz—a critical shipping route through which about 20% of the world’s energy supply typically passes. The waterway has effectively been shut since Iran responded to US and Israeli strikes by threatening vessels in the area.

Before the speech, Brent crude was trading near $100 per barrel. Following the address, it surged 4.8% to $106.02, while US benchmark West Texas Intermediate rose about 4% to roughly $104.

Analysts say the price spike reflects fading optimism for a quick ceasefire. The lack of a clear plan to restore normal shipping through the Strait of Hormuz has led markets to anticipate prolonged supply disruptions. Experts also suggest that the conflict could last months rather than weeks, keeping oil supplies tight.

Stock markets across Asia reacted negatively, reversing earlier gains. Japan’s Nikkei 225 fell 1.9%, South Korea’s Kospi dropped 3.5%, and Hong Kong’s Hang Seng declined by 1%. The region is especially sensitive to the situation due to its heavy reliance on Middle Eastern energy imports.

US stock futures also pointed lower ahead of Thursday trading, with Dow Jones and S&P 500 futures down around 1%, and Nasdaq futures falling about 1.4%, reflecting growing investor caution amid uncertainty over the conflict’s duration and economic impact.