Oil prices surged, and markets retreated after US President Donald Trump’s prime-time address, dashing hopes for clarity on when the Middle East conflict might end. During the address, Trump threatened to hit Iran “extremely hard” within weeks, claiming that military objectives have nearly been achieved and the conflict is close to ending. However, he was unclear about whether US military operations could end even before Iran reopened the Strait of Hormuz, a vital fuel shipping route. Investors were hardly reassured by Trump’s speech, with the front-month June Bent contract jumping around 5% to $106.16 per barrel. US stock futures fell 1%, while European futures dropped over 1.5%. The Asian market also showed a similar trend, with Japan’s Nikkei declining 1.8%. During the speech, Trump reiterated threats to bomb the country “back to the Stone Age” and tried to convince Americans of the benefits of the war. Trump urged Americans to see the war as an “investment” in their future, claiming it's minor compared to other, longer US conflicts over the past century. This comes as recent polls suggest that a consistent majority of voters disapprove of the US-Israeli military operation on Iran. In response, an Iranian military spokesperson said the US and Israel have been striking “insignificant” targets, warning of upcoming “crushing, broader, and destructive attacks.”
