Trump’s threat of further strikes rattles markets

Markets fell sharply on Thursday, with stocks declining, Brent crude rising to around $108 a barrel and the dollar strengthening after US President Donald Trump dashed hopes for clarity on when the Middle East conflict might end.

In a prime-time address, he said the US would hit Iran ‘extremely hard’ within weeks, arguing that key military objectives were nearly achieved and the conflict was close to ending, but he gave no timetable.

‘We have no additional certainty or clarity around timeline from this address and this is what the market was looking for,’ said Jon Withaar, senior portfolio manager at Pictet Asset Management in Singapore.

‘The fact that we can expect 2–3 more weeks of action, boots on the ground were not ruled out and that threats to hit infrastructure were reiterated will put the market back on the defensive, particularly as we come into the long weekend.’

(reuters, sak)