Oil Surges and Gold Crashes as Trump Vows to Send Iran into the Stone Age

Donald Trump’s first prime-time address on the Iran conflict was meant to reassure. Markets did not see it that way. Within minutes of the speech regarding the Iran war, oil prices jumped, gold slipped, and investors adjusted to what sounded less like a wind-down and more like a conflict with no clear end in sight.

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Markets Heard Two More Weeks of War and Sent Oil to $107 as Gold Fell 2%

Brent crude moved above $109 per barrel, while WTI crossed $103. Both gained over 7% after the speech. The crude oil price reaction was immediate, reflecting concerns that supply disruptions could drag on longer than expected.

Meanwhile, gold went the other way. After rising steadily over the past two weeks, it dropped over 3%, reversing its recent gains. The metal was priced at $4,616.4. The gold price drop suggests investors are shifting positions instead of simply moving into traditional safe-haven assets.

Equity markets reacted cautiously as well. Japan’s Nikkei fell around 2%, while South Korea’s KOSPI dropped close to 4%. Both the markets were pocketing gains earlier this week. Amidst this, US gas prices have climbed back above $4 per gallon for the first time since 2022.

Takashi Hiroki, chief strategist at Monex in Tokyo, said,

“The market has shown disappointment because the speech President Trump made was far less than what the market expected. There were no concrete details about the end of the hostilities with Iran. What the market wants is a clear outline for the ceasefire.”

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Trump Warns of Fresh Attacks, No Endgame?

In his address, Trump said the war could last another “two to three weeks.” He also warned of further strikes if no deal is reached. But he did not outline how the conflict would end or how key supply routes like the Strait of Hormuz would be secured. He added,

“Over the next two to three weeks, we’re going to bring them back to the stone ages, where they belong.”

The waterway carries about 20% of global oil shipments, and ongoing disruptions there remain a major concern for energy markets. The International Energy Agency has already warned that oil supply losses in April could be twice as high as in March. This has prompted analysts to see oil potentially rising toward $150 per barrel. This would put it above levels seen during the 2008 peak.

Amidst this, there are several comparisons to the 1970s oil shock. During this period, Middle East tensions pushed prices higher for longer than expected. The concern now is similar. The latest news on the Iran war has not changed direction. But it has made it clear that expectations of a quick resolution are fading.

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