US President Donald Trump thanks attendees after speaking from the Cross Hall of the White House on April 1, 2026 in Washington, DC.
Alex Brandon | getty images
US President Donald Trump said in a national address on Wednesday that the US will hit Iran “very hard” in the next two or three weeks.
“We are going to hit them very hard in the next two to three weeks,” he said. “We’re going to put them back in the Stone Age, where they belong.”
But the first targets to bear the brunt of the president’s “epic fury”, Washington’s name for the Iran operation, were Asian stocks, US Treasuries and oil prices.
Shortly after his 19-minute speech, Asian markets reversed gains from Thursday’s session, as benchmarks in Australia, Japan and South Korea fell. South Korean Kospi It fell 5.5%, leading to losses in the sector.
Hong Kong and mainland Chinese markets, which opened their sessions immediately after his speech, started the day in negative territory.
Markets reacted negatively as Trump says it’s almost over, he’s sending a third aircraft carrier and more troops to the region so it’s hard to believe his words.
Alicia Garcia Herrero
Chief Economist, Asia Pacific, Natixis
Stocks listed in Europe also started their trading day firmly in negative territory with pan-European stoxx 600 The index declined by more than 1%. Regional banking, mining and technology stocks were particularly badly hit, with Germany’s DAX suffering the most losses among major European exchanges.
Across the Atlantic, US stock futures were down more than 1% for all three major averages after trading flat at the start of the session.
Nervousness about the war’s trajectory also spread into bond markets, pushing up the cost of government borrowing in countries around the world. As of 3:45 a.m. ET, yields on government bonds issued by the US, UK, Germany, France, Japan, Italy and Canada were rising, indicating widespread selling in developed market debt markets.
Bond prices and yields move in opposite directions.
Yield on benchmark US 10 years Treasury notes rose 5 basis points to 4.368%, while Japan’s benchmark 10-year bond gained 8 basis points to trade at 2.384%.
in currencies, US dollar index It rose 0.5% to 100.157, reversing earlier losses.
Japanese yen The greenback weakened 0.5% to 159.60, while South Korean won Falling 0.6% to 1,521.80. Both currencies strengthened at the start of the session.
Dollar also strengthened against other major currencies euro It is trading 0.2% lower against the greenback at 1.153, while British Pound It fell 0.7% to 1.32 against the US dollar.
spot prices of gold It slipped 2.3% to $4,586.81 an ounce, paring deeper losses seen earlier. silver spot Was down 4.8% at $71.52 an ounce.
‘Mission almost complete’
Oil prices saw their biggest swings since Trump’s speech, with Brent crude futures jumping 6.7% to $107.92 a barrel, while US West Texas Intermediate rose 6.2% to $106.39.
Despite Trump’s claims that the US has almost met all its objectives, analysts say his threat to hit Iran “very hard” could still boost oil prices.
“Trump is declaring that the mission is nearly accomplished, but there is talk of further escalation in the next few weeks, increasing the risk of more widespread damage to regional energy infrastructure in Iran and throughout the Gulf,” Rachel Ziemba, founder of Ziemba Insights, told CNBC’s “The China Connection.”
Early Wednesday, Trump Claims that Iran’s “president of the new regime” had asked the US for a ceasefire, a claim denied by Tehran.
Trump said the US would “consider” the request only when the Strait of Hormuz is “open, free and clear”. true socialDue to which expectations have increased that the war may drag on for a long time.
“Remember – the longer this war goes on, the longer the energy disruption from the (Strait of Hormuz) will continue and the greater the risk of energy prices rising,” said Chetan Seth, APAC equity strategist at Nomura. “It’s not over until it’s over.”
Seth said risk markets like equities are “not surprisingly disappointed,” especially after the euphoria of the past few days.
Earlier this week, Trump hinted that the US could leave Iran even without opening the Strait of Hormuz, raising hopes of an end to the conflict. After this, the market gained momentum in the last two days.
“The market reacted negatively because Trump says it’s almost over, he’s sending a third aircraft carrier and more troops to the region, so it’s hard to believe his words,” Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis, told CNBC.
Earlier this week the U.S. reportedly deployed The Nimitz-class aircraft carrier USS George HW Bush and accompanying warships in the area. Washington previously ordered the carriers USS Abraham Lincoln and USS Gerald R. Ford was deployed in this area.
He added, “I think there is (a) greater possibility of further escalation of tensions.”
