Oil prices jump, stocks fall amid escalation fears after Trump’s inflammatory speech

Hind Al Soulia - Riyadh - NEW YORK — Oil prices climbed and stocks slipped Thursday after inflammatory remarks by US President Donald Trump dashed investors’ hopes of a prompt end to the war.
Brent crude, the global oil benchmark, rose 6.6% in early trade to near $108 a barrel. WTI, the US benchmark, climbed 6.3% to almost $106.4 a barrel.
Stock markets fell, after gains earlier in the week. South Korea’s Kospi led declines in Asia, closing 4.5% lower. In Europe, major indexes were overwhelmingly in the red and US futures also pointed to a lower open.
Market sentiment “deteriorated overnight,” following the address by Trump, which delivered no clarity “on potential timelines or conditions for ending hostilities against Iran,” Deutsche Bank analysts wrote in a note. “There was no signal of the US seeking an imminent offramp out of the war,” they added.
Instead of declaring victory or offering clarity on his strategy in the Iran war, the US president promised fresh attacks over the next two to three weeks, reviving fears of rising inflation and slowing economic growth.
Dampened hopes of an end to the war in Iran weighed on stock prices in Europe and Asia and gave oil prices a fresh boost early on Thursday.
In his prime-time speech to Americans, Trump said, “We are going to hit them extremely hard over the next two to three weeks. We’re going to bring them back to the Stone Ages, where they belong.”
The US president promised further strikes on energy facilities if no deal was reached with Tehran. Trump also said that the United States would “finish the job” in Iran soon, as “core strategic objectives are nearing completion” and military operations could wrap up shortly.
Trump did not mention a looming deadline he set for Iran to open the Strait of Hormuz, the critical waterway for global oil and gas transport, after he had earlier threatened US attacks on its energy infrastructure if the strait was not reopened. He did not offer a clear path to ending the supply disruptions that have sent energy prices soaring.
European stock indices opened lower on Thursday, with London’s FTSE down 0.7% at the open. Paris’s CAC 40 fell 1.2%, while Frankfurt’s DAX slipped 1.5%. Key indices in Milan and Madrid were down 1.3% and 1.5%, respectively.
The best-performing stocks were ENI S.P.A. and TotalEnergies, both up by more than 2% in the opening. At the same time, Deutsche Telekom, Schneider Electric, Rheinmetall, Infineon Technologies and ASML Holding were all down by more than 3%.
The euro lost 0.5% against the US dollar, with the exchange rate at 1.1531.
In Asia, the leading stock indices also closed the day with major losses. Tokyo’s Nikkei 225 was down 2.4%, and South Korea’s Kospi lost 4.5%.
Hong Kong’s Hang Seng fell 1.1%, while the Shanghai Composite Index was down 0.7%.
US futures were down between 1.1% and 1.5%.
Gold and silver prices fell. Gold was down 3.5% at $4,644.40 per ounce, and silver lost 6.8% to $70.90 an ounce. — Agencies