Expectations of Military Escalation Hedge Withdrawal Benefits, Trump's Speech Triggers Market Shock

Odaily News Trump delivered a rare prime-time national television address from the White House. He sought to reassure Americans unsettled by financial market turmoil and political support erosion due to the war, declaring that the war with Iran was "very close" to its end. However, as Trump hinted that military operations could escalate in the short term, international spot gold and silver prices plummeted, while WTI and Brent crude oil prices continued to surge. As of press time, spot gold had fallen over $100 on the day, spot silver had dropped more than 3%, and both WTI and Brent crude were up over 5%. The speech highlighted the immense pressure Trump faces to clarify the war's objectives to the public and find an "exit path" for a conflict now in its fifth week and becoming increasingly difficult to manage. Notably, the speech in some aspects resembled a mobilization call from the early days of the war rather than a summary one month in. Currently, the Strait of Hormuz, which handles one-fifth of the world's seaborne oil, has been largely blockaded since the outbreak of hostilities, becoming a major economic pressure point. Although Trump still insists that the energy shock will ease after the war, the administration has not clarified how it will persuade Iran to resume traffic through the strait. (Jin10)