US-Iran Conflict Disrupts Global Markets; Trump Stresses War Continuation Until Goals Met.

Trump Comments on Iran Military Actions

Overview of Casualties and Timeline

U.S. President Donald Trump addressed the recent casualties in the Iran conflict, marking the first U.S. military deaths with three soldiers killed. He stated, "Unfortunately, this situation is possible. Casualties may recur." Trump acknowledged that this was the first such incident during his second term. He estimated that military actions could last about four weeks, stating, "This is a large country, and the required time is approximately four weeks—maybe shorter."

Oil and Gold Market Reactions

As tensions escalated, international oil prices surged by $8 at the opening on Monday. Brent crude reached $82.37 per barrel, while WTI crude jumped to $75.33 per barrel. Safe-haven assets like gold and silver also saw increases, with gold rising to $5,374 per ounce (up 1.8%) and silver to $96 per ounce (up 2.6%).

Iran's Military Response

The Iranian military announced the initiation of the ninth round of "Real Commitment 4" strikes against U.S. and Israeli targets. The U.S. Central Command reported that it had conducted a large-scale operation, destroying the headquarters of the Iranian Revolutionary Guard.

Trump Open to Dialogue with Iran

In an interview with The Atlantic, Trump expressed that Iran's new leadership is interested in dialogue, and he is open to negotiations. He noted that many individuals involved in previous discussions are no longer alive, emphasizing the urgency for Iran to act sooner.

OPEC+ Production Increase

OPEC+ confirmed an increase in production by 206,000 barrels per day, citing a stable global economic outlook and healthy market fundamentals. They will gradually restore the additional voluntary cuts announced in April 2023.

Hong Kong's Preparedness for Market Risks

Hong Kong's Financial Secretary, Paul Chan, stated that while direct trade with Iran is limited, the ongoing conflict creates significant global uncertainty. He emphasized the need for the government to manage financial risks effectively.

Global Market Impact of Middle East Tensions

Experts suggest that the escalation in the Middle East could lead to a bear market in global stocks, depending on the conflict's scope and duration. The current situation is viewed as a structural shock rather than a systemic crisis.

U.S. Stock Market Performance

On the last trading day, all three major U.S. indices fell due to rising PPI inflation, a credit crisis, and the dangers of the U.S.-Iran conflict. The Dow Jones dropped 1.05%, the Nasdaq fell 0.92%, and the S&P 500 decreased by 0.43%.

Notable Stock Movements

• Tech Stocks: Nvidia fell over 4%, Apple dropped more than 3%, while Netflix surged nearly 14%.
• Chinese Stocks: NIO and Luckin Coffee saw declines of over 4% and 3%, respectively.
• Financial Sector: Regional bank ETFs fell over 5%, with Goldman Sachs down more than 7%.

Upcoming Financial Reports

Several companies, including CoreWeave and Dell Technologies, are set to release earnings reports soon, with expectations of significant growth in AI-related sectors.