Trump Declares "Decisive Victory" in Iran Operation; Gold Plunges About $80/oz Intraday

On April 1st, local time, U.S. President Trump delivered a nationwide address on Iran, announcing that the U.S. military achieved a "rapid and decisive victory" in recent military operations, and stated that Iran's military capabilities have been severely weakened.

Trump said that most Iranian leaders have been killed, the Iranian Navy no longer exists, the Air Force has been reduced to ruins, and the command and control capabilities of the Islamic Revolutionary Guard Corps are being destroyed. He emphasized that the U.S. military achieved a decisive outcome in this operation.

In terms of energy, Trump signaled a significant reduction in U.S. dependence on Middle Eastern oil. He stated that the U.S. is now completely independent of Middle Eastern oil, partly thanks to oil and natural gas supplies from Venezuela.

This statement suggests that the U.S. may adjust its energy strategy in the Middle East in the future, further easing market concerns over escalating geopolitical conflicts.

Meanwhile, risk aversion in the market quickly cooled down. Spot gold prices, affected by Trump's speech, fell $80 intraday, currently at $4,681 per ounce, reflecting capital withdrawal from safe-haven assets.

Overall, although Trump unilaterally declared victory, the market has not completely let go of doubts. However, with the U.S. signaling troop withdrawals, the subsequent game between the U.S. and Iran, the reshaping of Middle Eastern security dynamics, and potential adjustments in the global energy supply chain will remain key variables influencing future market trends.

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