US President Donald Trump has reignited market uncertainty after announcing potential new attacks against Iran in the coming weeks, instead of outlining a clear strategy or signaling a resolution to the conflict.
This statement has reduced expectations of a near-term end to the war, triggering negative reactions across global financial markets and pushing energy prices higher. Oil saw a strong surge early Thursday, with Brent crude oil briefly surpassing $108 per barrel before stabilizing around $107.70. Meanwhile, West Texas Intermediate climbed over 6%, reaching approximately $106.30 per barrel.
In a televised address, Trump stated that the United States would strike Iran “very hard” within the next two to three weeks, threatening further action against energy infrastructure if no agreement is reached. He also suggested that military operations could conclude soon, claiming that key strategic objectives are nearly achieved.
However, the lack of clarity regarding a ceasefire or diplomatic resolution disappointed investors. Markets had been expecting a clearer path toward de-escalation, but instead received signals of continued conflict.
European stock markets opened lower, reflecting this uncertainty. The FTSE 100 declined by 0.7%, while the CAC 40 and DAX dropped by 1.2% and 1.5% respectively. Southern European markets also followed the downward trend, with similar losses recorded.
Energy companies were among the few gainers, benefiting from rising oil prices. Eni and TotalEnergies both posted gains of over 2%. On the other hand, several technology and industrial stocks experienced sharper declines, reflecting broader risk-off sentiment.
Currency markets also reacted, with the euro weakening slightly against the US dollar.
Asian markets mirrored the negative trend, with Japan’s Nikkei 225 falling by 2.4% and South Korea’s Kospi dropping by 4.5%. Other major indices across the region also closed in the red.
Interestingly, precious metals did not benefit from the uncertainty. Gold dropped by 3.5%, while silver fell nearly 7%, signaling a broader shift in investor positioning rather than a traditional flight to safety.
Overall, markets are now focused on whether geopolitical tensions will escalate further or if a clear roadmap toward de-escalation will emerge. Until then, volatility is expected to remain elevated, especially in energy markets.
