Asia-Pacific markets experienced a decline on Thursday, undoing previous gains, as oil prices surged in response to U.S. President Donald Trump’s national address regarding the Iran conflict. In a 19-minute address, Trump emphasized that the U.S. goals in Iran were nearly achieved and asserted that “we have all the cards” in the ongoing conflict. He also stated that Washington will impose significant pressure on Iran “extremely hard” over the next two to three weeks.
On Wednesday morning in the United States, Trump asserted that the “New Regime President” of Iran had requested a ceasefire from the U.S., a statement that has been refuted by Tehran. Trump stated that the U.S. will “consider” the offer only once the Strait of Hormuz is “open, free, and clear,” he mentioned on Truth Social. According to a report, Trump previously indicated his willingness to terminate the U.S. military campaign against Iran, even in the event that the Strait of Hormuz remained closed. Oil prices surged in the aftermath of the address, with U.S. crude futures increasing by 6% to $106.39 and the global benchmark Brent climbing 6.7% to $107.97.
South Korea’s Kospi experienced a decline of 4.47%, concluding at 5,234.05, thereby leading the losses across Asia, while the small-cap Kosdaq fell by 5.36% to 1,056.34. Both indexes commenced trading with an increase exceeding 1%. Japan’s Nikkei 225 experienced a decline of 2.38% following Trump’s address, concluding at 52,463.27, whereas the Topix decreased by 1.61% to 3,611.67. Australia’s S&P/ASX 200 commenced the trading session on a positive note; however, it ultimately declined by 1.06%, concluding at 8,579.5. In the final hour of trading, Hong Kong’s Hang Seng index experienced a decline of approximately 1%, while the CSI 300 index on the mainland of China recorded a loss of 1.04%, concluding the day at 4,478.91. Indian markets commenced the trading session on a negative note following Trump’s address, with the Nifty 50 declining by 1.38% and the Sensex experiencing a drop of 1.47% as of 1:06 pm.
“Markets reacted negatively because, while Trump asserts that it is nearly over, he is dispatching the third aircraft carrier and additional troops to the region, making it difficult to take his statements at face value,” Alicia Garcia Herrero told. U.S. stock futures experienced a decline, as S&P 500 futures and Nasdaq-100 futures decreased by more than 1%. Futures for the Dow declined by 439 points, representing a decrease of 0.94%. Overnight in the U.S., the S&P 500 advanced by 0.72%, while the Nasdaq Composite experienced a gain of 1.16%. The Dow Jones Industrial Average increased by 0.48%.