Asian markets drop after Trump signals he’ll bomb Iran ‘back to the stone ages’, tells other countries to ‘take the lead’ in reopening Hormuz

Asian investors reacted poorly to U.S. President Donald Trump’s nationwide address on Thursday. After more than a day of speculation as to what Trump might discuss, ranging from sending in ground forces to plans for a ceasefire, the president’s address instead signaled a continued conflict and energy disruptions.

Trump delivered his address right as trading had started in some Asian markets. In his 20-minute long speech, the president said the U.S. will likely continue military operations for another 2-3 weeks, that he was ready to bomb Iran “back to the stone ages”, and that he was ready to hit power plants if a deal wasn’t reached.

West Texas Intermediate Crude surged past $106 per barrel; rising oil and gas prices will continue to put pressure on Asian economies that rely on imported energy.

South Korea’s KOSPI, which has swung wildly since the war began over a month ago, fell by almost 4.5%. Japan’s Nikkei 225 dropped by 2.4%, while Hong Kong’s Hang Seng Index fell by around 0.7%. Taiwan’s TAIEX fell by 1.8%. As of 4:30am Eastern, India’s NIFTY 50 is down by 0.67%.

Trump’s messaging on Iran has constantly shifted over the past few weeks, oscillating between calls for expanded and aggressive strikes on the Middle Eastern country, to suggestions that he might be comfortable with withdrawing from the conflict and leaving Iran to hold the Strait of Hormuz.

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