The situation in Iran keeps reversing and reversing again, leaving investors confused.

How AI and Trump’s Tweets Trigger Global Asset Price Roller Coasters

“How long will the Strait of Hormuz be closed? Such a single external event can reprice all assets simultaneously. Decentralization cannot hedge this risk.”

** Text / Ba Jiuling**

Last night, the global markets experienced a major reversal, initiated by none other than U.S. President Donald Trump.

On the evening of March 23, Beijing time, Trump suddenly announced on social media that his recent two-day negotiations with Iran had been “very good,” and that he would suspend military strikes on Iran’s energy infrastructure for the next five days.

Speech by Trump to the media on March 23

Image source: Getty Images

His words immediately caused a market uproar.

Just yesterday, Asian markets had just experienced “Black Monday,” with the Hang Seng Index falling 3.6%, the Nikkei 225 down 3.48%, and the KOSPI plunging 6.49%. The Shanghai Composite Index hadn’t even had a chance to defend the 4,000-point level before it had to defend the 3,800-point mark, dropping 3.63% that day to a new low for the year, briefly falling to 3,794 points before barely closing at 3,813.

Due to time zone differences, “Black Monday” gradually propagated to European markets, which opened with declines of over 2%. Next was the U.S. stock market. At this moment, Trump made his move.

After Trump’s tweet, the fastest reactions were in oil and gold. Brent crude oil plummeted over 10% from its high of $113 per barrel, briefly dropping below $97. WTI crude also fell more than 12%, bottoming out below $85.

Gold, on the other hand, moved in the opposite direction. On March 24, London gold prices dropped sharply by 8.22% that day, then narrowed to a decline of 1.22%; meanwhile, London silver not only recovered but also rose 2.83%.

After Trump’s statement, oil and gold prices diverged

Image source: Futu NiuNiu

European markets also took this opportunity to rebound, ending the day with gains around 1%. U.S. stocks were unaffected by the “black swan,” with the Dow Jones and Nasdaq both rising 1.38%, and the S&P 500 up 1.15%.

This left the Asian markets’ opening to be the next suspense. After a rapid roller coaster ride, how should investors face the current market?

Markets Driven by “News”

“Last night I queued to fill up my tank before midnight, and today at open, I found my car was gone.” This viral joke from yesterday perfectly reflects recent market movements.

Last weekend, Trump suddenly issued a 48-hour “final ultimatum” to Iran: if navigation freedom through the Strait of Hormuz isn’t fully restored within 48 hours, he will attack Iran’s power plants.

Iran responded strongly, stating that if Iran’s power stations and infrastructure become targets, key facilities across the Middle East—energy and oil—will be considered legitimate targets.

Fearing a surge in oil prices on March 23, many queued at gas stations, but the capital markets left little time for an early retreat.

On Monday, March 23, only 305 stocks in the A-share market rose, while 5,172 declined, with 145 hitting the daily limit down.

Oil prices soared. To mitigate the adverse impact of rising oil prices on various industries and ease downstream consumer burdens, the National Development and Reform Commission (NDRC) announced for the first time since 2013 a temporary regulation of refined oil prices after market close.

Based on the current pricing mechanism, domestic gasoline and diesel prices (standard