Global markets declined and oil prices surged after US President Donald Trump signalled that the Iran conflict could continue for several weeks, raising concerns over supply disruptions and prolonged economic impact, according to American media reports.
US stock futures fell following Trump’s address, with S&P 500 futures down around 0.8%, Nasdaq futures slipping nearly 1%, and Dow futures dropping about 350 points, as reported by outlets including The Wall Street Journal, The New York Times, and CNBC.
Asian markets also opened lower. South Korea’s Kospi fell over 2%, while Japan’s Nikkei declined, reflecting investor concerns about energy supply uncertainties.
Oil prices rose sharply after Trump warned that the United States would act “extremely hard over the next two to three weeks” if no agreement is reached with Iran. The global benchmark climbed more than 3%, with Brent crude crossing $105 per barrel in Asian trading.
Reports noted that investors had been expecting signs of de-escalation or a clearer exit strategy. Instead, while Trump suggested the conflict was nearing its end, he also hinted at further military action, adding to market uncertainty.
Attention remains on the Strait of Hormuz, a critical route for global oil shipments that has been affected during the conflict. Analysts say continued disruptions could tighten supply and keep prices elevated.
According to a report by Oxford Economics cited by The New York Times, the conflict has already led to a 10% gap between global oil supply and demand, raising the risk of widespread rationing and supply chain disruptions, particularly in emerging economies.
Rising energy costs are also fuelling inflation concerns. US gasoline prices have crossed $4 per gallon, putting additional pressure on households and businesses.
While Trump described the rise in fuel prices as temporary and expressed confidence in market stability once the conflict ends, economists warn the impact could be longer-lasting, with some lowering growth forecasts and flagging the risk of an economic slowdown if tensions persist.