Equities Tumble, Greenback Rises Following Trump's Iran Conflict Address

On Thursday, equities fell, the U.S. dollar firmed, and oil prices increased following remarks by President Donald Trump, who asserted that Washington's 'core strategic objectives' in the Iran conflict are close to completion yet provided no clear timeline for the war's end.

Recent hopes for concluding the month-long U.S.-Israeli military engagement with Iran had previously lifted global stocks and reduced the dollar's strength over the prior two sessions, after a harsh March where soaring oil prices triggered a downturn in risk assets.

However, during his prime-time televised speech, Trump declared that the United States would strike Iran 'extremely hard' within the next two to three weeks, vowing to set the country back to the 'Stone Ages.'

This rhetoric prompted a market retreat, with U.S. stock futures down 0.67% and European futures 0.1% lower.

MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.75%, while Japan's Nikkei average reversed earlier gains to trade down 0.79% in volatile conditions.

Analysts and investors concentrated on the timing and manner of reopening the Strait of Hormuz, a vital fuel shipment route, to ease the supply bottleneck severely impacting Asian economies.

Iran has repeatedly targeted Gulf nations, some hosting U.S. bases, and is leveraging control over the Strait of Hormuz—which conveys about one-fifth of global oil and liquefied natural gas—as a strategic tool.

Higher energy prices in March intensified fears of worldwide inflation, while concerns about slowing economic growth further sapped market sentiment.

During the turmoil, the U.S. dollar emerged as the preferred safe-haven asset, rising against most currencies after the speech.

The euro weakened 0.25% to $1.156, and the front-month Brent crude contract for June surged over 3% to $104.75 per barrel.