The Washington Post reported that following the White House's announcement of a "major update" on the war with Iran, global financial markets reacted with a significant surge in optimism regarding the potential end of the conflict.!📢
The announcement of President Donald Trump's address on Wednesday evening, during prime time (9:00 PM Washington time), injected a wave of optimism into global markets.✏️
Anticipating the possibility of a ceasefire announcement, or at least a clarification of a strategy to end the conflict, traders engaged in buying and selling, leading to a significant drop in oil and gas prices.📌
Energy Prices Fall and Markets React Positively
Reports indicate that Brent crude oil prices fell sharply from $118 to below $100 per barrel.
In the stock markets, major Wall Street indices, including the Dow Jones, S&P 500, and Nasdaq, all rose by more than 2 percent.
This positive trend was mirrored in Asian and European markets, where investors hoped Trump's address would put an end to the volatility caused by the war.
The “Quick Exit” Strategy and the Fate of the Strait of Hormuz
White House spokeswoman Carolyn Leavitt said that Trump’s recent statements reflect a radical shift in Washington’s approach.
Trump confirmed that he would end the military campaign within two to three weeks, emphasizing that the United States would no longer bear responsibility for the long-term security of the Strait of Hormuz.
He stated bluntly: “If France or anyone else wants oil and gas, they have to find their own way through the Strait of Hormuz; we will no longer interfere.”
US Secretary of State Marco Rubio also expressed optimism, indicating that Washington is nearing the “finish line” in achieving its objectives.
He described the battle as the “last chance” to cripple the Iranian regime’s conventional capabilities before Tehran achieves “complete deterrence.”
Heavy Costs of a Month of Fighting
Despite the positive market sentiment, field assessments indicate heavy costs incurred by the US economy and military during a month of fighting.
The war has disrupted energy supplies, with gasoline prices in the United States exceeding $4 a barrel, while allied countries suffer repeated economic shocks.
In the maritime sector, the number of ships transiting the Strait of Hormuz has plummeted from 138 per day to just 5.
The deployment of thousands of troops to the region and the deaths of 13 American soldiers have also sparked a wave of criticism and mounting pressure on the White House.
Tehran's Response and Continued Tensions
In response, Tehran rejects statements by American officials regarding progress in negotiations.
Iranian Foreign Minister Abbas Araqchi asserted that trust in the United States has reached zero, indicating that American messages do not signify the start of negotiations.
Iranian parliamentarians have also discussed drafting new rules for managing the Strait of Hormuz, a move that could reshape the maritime order in the region.
Continued Tensions Ahead of Trump's Speech
As the world awaits Trump's speech, confrontations continue, with attacks on oil tankers in Qatari waters and an attack on Kuwait Airport, reflecting the ongoing security tensions.
The most prominent question remains: Will Trump’s speech be the key to ending the crisis, or just a temporary lull before a greater escalation؟
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