Key facts
- President Donald Trump declared the US-Iran ceasefire over, leading to significant market reactions.
- The US launched strikes on Iran, with Iran retaliating by targeting US military sites.
- Crude oil prices surged 5% to test $75 resistance, with potential to reach $78.
- Major US stock indices, including the S&P 500, Nasdaq 100, and Dow Jones, experienced declines.
- Gold prices fell 2.5%, and cryptocurrency markets saw over $385 million in liquidations.
President Donald Trump declared the US-Iran ceasefire over, stating "I don’t want to have anything to do with them anymore; they’re scum," a move that jolted global financial markets. The remarks, which included Trump referring to Iran as the "Islamic Republic of Japan," came after US strikes on Iran and Iranian retaliation targeting 85 US military sites. Previous positive progress in indirect talks between Iranian and US negotiators, facilitated by Qatari and Pakistani mediators, now appears to be in vain.
Trump also issued a stark warning about potential US military actions, stating, "The U.S. military could destroy all of Iran’s bridges, disable its electrical grid, and destroy its desalinization plants in one day." He specifically mentioned Kharg Island, Iran's primary oil export port, claiming the US had struck it and might end up controlling it, a development that would significantly disrupt global oil supply.
The market reaction was swift and widespread. Crude oil prices surged 5% to test $75 resistance, with potential to reach $78 if prices close above $72. The S&P 500 fell 1%, the Nasdaq 100 dropped 1.5%, and the Dow Jones lost 1.3%. Gold declined 2.5% from $4100 to $4030. Crypto assets followed stocks, with over $385 million in liquidations reported in the last 24 hours. Bitcoin retraced from its $64,000 resistance level, with a potential support at $61,500 and a possible new low around $59,500 if tensions escalate.