Trump’s threat to hit Iran ‘extremely hard’ jolts Asian stocks, U.S.
U.S. President Donald Trump acknowledges those in attendance after speaking from the Cross Hall of the White House on April 1, 2026 in Washington, DC.
Alex Brandon | Getty Images
U.S. President Donald Trump said the U.S. will hit Iran “extremely hard” over the next two or three weeks in a national address on Wednesday.
“We’re going to hit them extremely hard over the next two to three weeks,” he said. “We’re going to bring them back to the stone ages, where they belong.”
But the first targets to bear the brunt of the president’s “Epic Fury,” Washington’s name for the Iran operation, were Asian stocks, U.S. Treasuries and oil prices.
Shortly after his 19-minute speech, Asian markets reversed earlier gains from Thursday’s session, as benchmarks in Australia, Japan and South Korea fell. South Korea’s Kospi plunged 4.37%, leading losses in the region.
The Hong Kong and mainland Chinese markets, which opened their sessions shortly after his speech, started the day in negative territory.
Markets reacted negatively because, while Trump says it is nearly over, he is sending the third aircraft carrier and more troops to the region so it is hard to believe his words.
Alicia Garcia Herrero
Chief Economist, Asia Pacific, Natixis
U.S. stock futures were down over 1% for all three major indexes after trading flat earlier in the session.
U.S. Treasury yields climbed after Trump’s speech, signaling a sell-off in the bond market, with the yield on the benchmark 10-year notes climbing 6 basis points to 4.38%.
In currencies, the U.S. dollar index rose 0.37% to 100.02, reversing earlier losses.
The Japanese yen weakened 0.38% to 159.37 against the greenback, while the South Korean won fell 0.6% to 1,521.80. Both currencies had strengthened earlier in the session.
The dollar also strengthened against other major currencies, with the Euro trading at 1.153, while the pound fell 0.57% to 1.32 against the U.S. dollar.
Spot gold prices slipped 1.82% to 4,671,67.
‘Mission almost accomplished’
Oil prices saw the largest swings after Trump’s speech, with Brent crude futures jumping 5.37% to $106.59 a barrel while U.S. West Texas Intermediate rose 4.51% to $104.64.
Despite Trump’s claim that the U.S. has almost met all its objectives, analysts said his threat to hit Iran “extremely hard” could still send oil prices higher.
“Trump is declaring mission almost accomplished, but highlighting further escalation in the next few weeks, which increases the risk of more extensive damage to regional energy infrastructure both in Iran but throughout the Gulf, ” Rachel Ziemba, founder of Ziemba Insights, told CNBC’s “The China Connection.”
Early Wednesday stateside, Trump claimed that Iran’s “New Regime President” had asked the U.S. for a ceasefire, a claim that Tehran has denied.
Trump added that the U.S. will “consider” the request only once the Strait of Hormuz is “open, free, and clear,” he said on Truth Social, fueling expectations that the war could drag on longer.
“Remember — the…
Read More: Trump’s threat to hit Iran ‘extremely hard’ jolts Asian stocks, U.S.