Stocks tumble and oil jumps above $113 as Trump's Iran address lacks ceasefire roadmap
WASHINGTON, DC: Global markets reacted sharply on Thursday, April 2, after President Donald Trump’s address on the Iran conflict failed to provide a clear path toward de-escalation.
Oil prices surged while US stocks fell at the opening bell, reflecting investor concerns about prolonged instability.
Trump indicated that military operations would continue in the coming weeks, contributing to uncertainty around energy supplies. The developments come as the conflict enters its second month and economic risks begin to intensify.
Market declines as oil prices surge
US equities dropped significantly at the start of trading, with the S&P 500 falling 1.3%, the Nasdaq Composite declining 1.8%, and the Dow Jones Industrial Average losing 625 points. The Russell 2000 index, which tracks smaller companies, fell 1.6%.
At the same time, oil prices surged sharply. US crude rose 12% to more than $113 per barrel, while Brent crude increased 8% to over $109 per barrel.
Other energy-related commodities, including heating oil and natural gas, also posted gains. The rise reversed two days of declines and began during Trump’s address on Wednesday night.
Fuel prices for consumers have also climbed. The national average price for unleaded gasoline reached $4.08 per gallon, up from $2.98 before the conflict, while diesel rose to $5.51 per gallon.
GasBuddy analyst Patrick De Haan said, “Motorists could start seeing oil's surge show up at the pump starting around mid-day.”
Analysts pointed to uncertainty following Trump’s remarks as a key factor driving market reactions.
“The markets wanted something different,” UBS Global Wealth Management CIO Paul Donovan wrote, adding that escalation risks could provoke further Iranian responses and threaten infrastructure in the Gulf region.
Trump signals continued strikes with no clear off-ramp
In his address, Trump said the conflict could end “shortly” but also pledged additional “extremely hard” strikes on Iran “over the next two to three weeks.” He emphasized that military operations would continue until objectives were “fully achieved.”
Notably absent from the speech was a defined plan for a ceasefire or reopening the Strait of Hormuz, a critical global oil transit route through which more than 20% of the world’s supply typically flows.
Trump said, “The strait will open up naturally,” and later added, “When this conflict is over, the strait will open up naturally. It will resume the flow (of oil), and the gas prices will rapidly come back down.”
With US markets set to close for Good Friday, analysts noted that geopolitical uncertainty may be prompting additional selling pressure as investors seek to limit exposure ahead of the long weekend.
