Oil surges, global stocks tumble as Trump escalates Iran threats

Global oil prices surged while stock markets across major economies fell sharply on Thursday after United States President Donald Trump intensified threats against Iran, raising fresh concerns over the prolonged closure of the Strait of Hormuz.

 

Brent crude jumped nearly seven per cent to $108.15 per barrel, while West Texas Intermediate rose over six per cent to $106.75, as investors reacted to growing uncertainty surrounding the ongoing conflict and its impact on global energy supply.

 

Trump, in his first prime-time address since the war began, warned that US forces would continue strikes against Iran for “another two to three weeks,” declaring that his administration would “bring them back to the Stone Ages.” However, he offered no clear strategy for reopening the Strait of Hormuz — a critical global shipping route that remains shut.

 

The address dampened earlier optimism in financial markets, which had been buoyed by recent suggestions from both Washington and Tehran that the conflict could end soon.

 

Analysts say the lack of a clear resolution plan has unsettled investors.

 

“Trump spoke of objectives met, but not of resolution. Of continued strikes, not withdrawal,” said Stephen Innes of SPI Asset Management, noting that uncertainty continues to fuel market volatility.

 

Global equities reacted negatively to the developments. Major Asian markets, including Seoul, Tokyo, Hong Kong, Shanghai, and Mumbai, recorded significant losses, while European markets in London, Paris, and Frankfurt also declined.

 

Market analysts say investors had expected more clarity from the US president.

 

“Investors wanted to hear more than what was provided, particularly a definitive timeline for ending the conflict,” said Michael Brown of Pepperstone.

 

The ongoing war, which began on February 28 following US-Israeli strikes on Iran, has triggered sharp fluctuations in global markets, with concerns mounting over energy supply disruptions and broader economic consequences.

 

Tensions have been further heightened by conflicting signals from both sides, with Iran insisting that the Strait of Hormuz will remain closed to its “enemies,” despite US claims of ongoing peace talks.

 

Meanwhile, global leaders are scrambling for solutions. The United Kingdom is hosting a meeting of about 35 countries to explore diplomatic options for reopening the vital waterway and restoring the flow of energy supplies.

 

UK Prime Minister Keir Starmer said the meeting would focus on ensuring safe navigation and resuming the movement of critical commodities.

 

The economic fallout is already drawing concern from global institutions. World Bank Managing Director Paschal Donohoe warned of potential impacts on inflation, employment, and food security.

 

“We are extremely concerned about the effect this crisis will have on the global economy,” he said.

 

In response, some countries are already rolling out emergency measures. South Korea, for instance, has proposed a $17.2 billion supplementary budget, with President Lee Jae Myung warning that the economy is now being managed “on a wartime footing.”

 

As the conflict drags on, analysts say markets are likely to remain volatile, with oil prices and global trade routes at the centre of the uncertainty.