He hinted at tougher military action against Iran soon, wiping out the cautious optimism that had been boosting risky assets.
Stocks nosedived too. The S&P 500 slid lower, and MSCI’s Asia Pacific index reversed its recent gains ending down 1.7%. Meanwhile, Brent crude soared over 5%, topping $106 a barrel, as traders started factoring in a longer disruption near the Strait of Hormuz. This kind of chaos is exactly what keeps riskier investments stuck.
Earlier in the week, things felt different Trump’s comments suggested he might end the conflict and open up the Strait of Hormuz, which is huge for global trade. But the April 1 speech changed everything. Instead of negotiation, he talked escalation. Investors got no hint about when things might settle down—just the threat of ramped-up military action.