Trump hints at further military strikes against Iran, oil prices rise, Asian stocks fall

On Thursday, Asian oil prices rose as U.S. President Trump hinted at further military strikes against Iran, reigniting concerns over Middle Eastern supply disruptions. These remarks weakened risk appetite, dragging Asian stock markets lower.

In a speech during prime time, Trump said the U.S. “will deliver extremely heavy blows to them within the next two to three weeks. We will bring them back to the Stone Age.” Trump praised the war as an investment in America’s future and implied that U.S. military actions could end within a month. Trump also said that allies relying on Middle Eastern oil passing through the Strait of Hormuz should “go to the strait, take it directly, protect it, and use it for themselves,” as Iran has effectively closed the strait.

Nearby month West Texas Intermediate crude futures rose 3.6%, to $103.80 per barrel, reversing an earlier decline of up to 2.6%, while nearby Brent crude futures increased 4.5%, to $105.71 per barrel.

The Nikkei Index in Japan fell 1.4%, the KOSPI in South Korea dropped 2.6%, and the Hang Seng Index in Hong Kong declined 0.8%. U.S. stock index futures also fell, with S&P 500 mini futures down 0.9%, Nasdaq 100 mini futures down 1.1%, and Dow Jones mini futures down 0.8%.