Trump's Iran Strategy: US Stocks Plummet as Oil Prices Surge

New York stock markets closed down by 1.32% following President Donald Trump's announcement of an economic operation against Iran, while the S&P 500 and Nasdaq indexes fell by 0.87% and 1% respectively. Trump's declaration of measures aimed at collapsing Iran's economy has led Treasury Secretary Scott Bessent to warn that the U.S. is preparing the harshest sanctions in history, stating that oil markets have misinterpreted the impact of this economic pressure. Brent crude futures rose by 2% to $93.40 per barrel. The U.S. Treasury's announcement that it will increase the size of its long-term bond repurchase operations by at least double led to a decline in bond yields. The 10-year Treasury yield rose to 4.70%, and the 30-year yield increased to 5.25%. Unemployment benefit claims fell by 6,000 to 206,000. Fed officials downplayed the need for preventive rate hikes, emphasizing that a gradual approach is preferable.

The U.S.'s economic pressure on Iran is seen as a factor accelerating the decline in U.S. stock markets, while rising oil prices have once again brought inflation risks to investors' attention. These developments, amid the U.S.'s tougher stance on Middle East policy, signal a period where global markets will need to be closely monitored.