02.04.2026 15:58
Financial markets plunged into turbulence following a bellicose address by U.S. President Donald Trump, shattering hopes for a diplomatic de-escalation in the Middle East conflict. In a primetime speech Wednesday evening, Trump vowed to bomb Iran “back to the stone age,” eschewing the conciliatory tone many had anticipated. The immediate reaction was a sharp sell-off on Wall Street, with the Nasdaq Composite (IXIC) tumbling over 2% by Thursday morning. The broader S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) both retreated by approximately 1.5%, abruptly ending a two-day rally that had been fueled by earlier rumors of the administration seeking an exit strategy from the protracted war.
The President’s unwavering commitment to military escalation and economic coercion has reintroduced a pervasive risk-off sentiment across global markets. His speech, the first major national address since the U.S. and Israel initiated hostilities against Iran on February 28, doubled down on a strategy targeting civilian infrastructure, including pharmaceutical facilities. Furthermore, he offered no clear pathway to reopen the Strait of Hormuz—a critical chokepoint whose closure has strangled oil supplies. Adding to the pressure, new tariff policies were unveiled. According to *The Wall Street Journal*, finished goods incorporating imported steel and aluminum will now face a 25% levy based on the product’s total value, a significant escalation from previous duties that only taxed the raw material component. A separate 50% tariff on products composed almost entirely of steel and aluminum remains in effect.
Energy prices skyrocketed in response to the heightened geopolitical risks and supply chain disruptions. Crude oil futures surged nearly 11% on Thursday, with West Texas Intermediate (WTI) crude hitting $111.20 per barrel—the highest level in years. This spike in energy costs directly impacted market-sensitive sectors, particularly technology stocks. The Nasdaq’s decline was especially pronounced, with investors fleeing high-growth equities amid fears that sustained expensive oil will squeeze corporate margins and spur inflationary pressures across the economy. Meanwhile, traditional safe-haven assets reacted mixedly: long-dated U.S. Treasury yields rose as yields, while gold prices dipped over 3% amid the chaotic, dollar-strengthening environment.
