Financial markets reacted negatively to growing concerns about the escalation of the war in Iran, with stock prices falling, oil prices rising, and the US dollar strengthening. These developments followed statements by US President Donald Trump that did not provide the expected clarity on the timing of the end of the conflict in the Middle East.
Trump said that the US could deliver a “very powerful” blow to Iran in the coming weeks, emphasizing that the objectives of the military operation were almost achieved and the conflict was nearing its end.
At the same time, the price of June Brent crude oil futures rose by about 5% to $ 106.16 per barrel. Investors did not find the president’s statements sufficiently encouraging, as they lacked clarity on when and under what conditions the Strait of Hormuz, a key route for the supply of energy resources, would be reopened. The closure of the Strait has caused major disruptions to supply chains, particularly affecting Asian markets.
“We still don’t have enough certainty and clarity on the timing, which is exactly what the market was expecting,” said John Witthaar, senior portfolio manager at Singapore-based Pictet Asset Management.
