US-Iran Conflict Disrupts Global Markets; Trump Promises No End to War 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 lost. He stated, "Unfortunately, this situation is possible. Casualties may recur." Trump acknowledged that this was the first instance of such casualties during his second term. He estimated that military actions could last approximately four weeks.

Oil and Gold Market Reactions

As tensions escalated, international oil prices surged by $8 at the opening on Monday, with Brent crude reaching $82.37 per barrel and WTI crude climbing 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 destroyed the headquarters of the Iranian Revolutionary Guard.

Trump Open to Dialogue with Iran

In an interview, Trump expressed that Iran's new leadership is interested in dialogue, and he is open to negotiations. He criticized the previous Iranian leadership for not acting sooner to reach an agreement.

OPEC+ Production Increase

OPEC+ confirmed an increase in oil production by 206,000 barrels per day, citing stable global economic prospects and healthy market fundamentals. They emphasized the importance of flexibility in response to market conditions.

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 noted that the government is prepared to manage financial risks and has sufficient plans in place.

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 seen as a structural shock rather than a systemic crisis.

U.S. Stock Market Performance

On the previous trading day, all three major U.S. indices fell, with the Dow Jones down 1.05%, Nasdaq down 0.92%, and S&P 500 down 0.43%. Notable tech stocks like Nvidia and Apple also saw declines.

Notable Earnings Reports

• CoreWeave: Reported a significant drop in stock price after disappointing revenue guidance.
• Dell Technologies: Stock surged nearly 22% following strong earnings and optimistic future projections.

SpaceX IPO Plans

SpaceX is reportedly preparing to file for an IPO as early as March, aiming to raise up to $50 billion, which would set a new record for IPO fundraising.

Conclusion

The ongoing geopolitical tensions and market reactions highlight the interconnectedness of global events and financial markets. Investors are advised to stay informed and prepared for potential volatility.