Trump Issues Another "48-Hour Ultimatum," Oil Prices Surge at Monday Open, Gold and US Stock Futures Fall, Japanese and South Korean Stocks Open Higher
Trump warned that he would destroy Iran's infrastructure if an agreement was not reached by April 7. Escalating geopolitical risks pushed international oil prices up, with Brent crude futures rising 1.55% and breaking through the $110 mark. Meanwhile, financial markets showed mixed reactions, with US stock futures all experiencing slight declines. Nasdaq 100 futures fell 0.02%, while Japanese and South Korean stock markets rose against the trend, and gold and silver saw short-term pullbacks
President Trump has once again threatened a larger-scale strike against Iran, with international oil prices continuing their rally and breaking above $111, further intensifying the risks to the global economic growth outlook.
According to CCTV News reports, on April 5th local time, US President Trump stated in an interview that the United States is currently in "deep negotiations" with Iran and an agreement is expected before his self-imposed April 7th deadline. Trump said an agreement is highly likely, but if it is not reached, "everything there will be destroyed."
According to Xinhua News Agency reports, some Trump administration officials have privately discussed that the US military operation, codenamed "Epic Fury," will enter its second phase. Trump's aides have suggested listing Iran's power plants and bridges as "legitimate military targets." Defense Secretary Hagerty recommended Trump bomb roads to make it difficult for Iran to transport materials for missile and drone manufacturing.
Trump's threat to bomb Iranian infrastructure has caused concern among some Gulf nations, who fear Iran may retaliate by attacking the energy infrastructure of Gulf countries.
Influenced by the above news, Brent crude futures extended their gains to 1.55%, trading at approximately $111 per barrel.
Financial markets reacted with divergence. US stock futures all experienced slight declines, with Nasdaq 100 Index futures down 0.02% and S&P 500 Index futures down 0.18%. Asian stock markets opened slightly higher before expanding their gains, with the Nikkei 225 Index up 1.23%; the South Korean KOSPI rose 1.95%; gold fell 0.87% to approximately $4636 per ounce, and silver fell 0.88% to approximately $72 per ounce.
OPEC+ has warned that damage to Middle Eastern energy facilities will have a sustained impact on oil supply, which will be difficult to recover quickly even after the conflict ends.
Homin Lee, a strategist at OCBC Bank in Singapore, stated, "For investors, the prediction game remains quite tricky. Investor focus will be on the military actions on both sides of the Persian Gulf, and whether the shipping traffic in the Strait of Hormuz can further improve despite these attacks."
Brent Crude Rises
Brent crude futures rose 1.55% to $111/barrel.
US Stock Futures All Decline Slightly
Nasdaq 100 Index futures fell 0.02%, and S&P 500 Index futures fell 0.18%.
Japanese and South Korean Stock Markets Rise
The Nikkei 225 Index opened 0.4% higher and later expanded its gains to 1.23%; the South Korean KOSPI opened 0.9% higher and later expanded its gains to 1.95%.
Gold and Silver Decline
After Trump threatened to destroy Iran's infrastructure, and Tehran showed little sign of accepting the US demand to end the war in the Middle East, spot gold fell 0.87% to $4636/ounce; spot silver fell 0.88% to $72/ounce.
