Trump's Tough Talk Rocks the Market: Oil Price Surges, Gold Plunges, Risk Assets Under Pressure

April 2 (Tuesday) — U.S. President Trump declared in a national address Tuesday that military action against Iran has achieved a “rapid and decisive victory,” with core objectives nearly complete. He explicitly warned more “heavy blows” will hit Iran in the next 2-3 weeks but did not mention a ceasefire or clear exit strategy—triggering sharp market volatility. In energy markets: Trump threatened to target Iran’s energy infrastructure if no agreement is reached, while reiterating other countries should secure the Strait of Hormuz to ensure navigation. That lifted supply disruption fears sharply. WTI crude surged above $103/bbl, Brent topped $102/bbl—both up over 4% intraday—pushing energy risk premiums higher quickly. Financial markets faced concurrent pressure: U.S. stock futures slipped, with S&P 500 futures down ~0.5%; Asia-Pacific equities reversed earlier gains. The U.S. 10-year Treasury yield climbed to ~4.35%, and Japanese 30-year yield rose—reflecting market repricing of inflation and policy uncertainty. Precious metals saw a steep pullback: Spot gold fell below $4700/oz, down over 2% intraday; silver dropped more than 3%. That signals a temporary exodus of safe-haven funds amid rising rates and short-term risk aversion shocks. Market analysts say Trump’s speech sent mixed signals (alternating between “near-victory” and more strikes), failing to clarify a conflict resolution or ease Strait of Hormuz concerns. Instead, it amplified energy supply risks and global inflation fears, driving sharp divergence in commodities and risk assets.