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LIVE | Euphoria continues in the stock markets and oil falls after Trump's words on a near end to the war with Iran

The U.S. president believes the "short excursion" in the Middle East has nearly achieved all of its goals, though he warns the ayatollahs that if they keep up the attacks and continue to use oil "as a hostage," he may hit them "very, very hard."

U.S. sailors on the deck of the USS Abraham Lincoln.

U.S. sailors on the deck of the USS Abraham Lincoln.US Central Command Public Affairs.

Israel Duro
Published by
Israel Duro

Donald Trump's comments late Monday in various settings predicting a swift end to the war with Iran have generated optimism around the world after a terrible day for world stock markets and the price of oil. The U.S. president, however, noted that he is not giving up on finishing off the current leaders of the Ayatollahs' regime and that he can still hit them "very, very hard" if they insist on maintaining the attacks and continue to use oil "as a hostage."

These words brought optimism back to the markets, which changed radically from that moment on. Wall Street closed in positive, as did the main Asian stock markets. Europe also opened in the green while the price of black gold experienced a notable decline throughout this time.

However, from Iran they were not very pleased with Trump's analysis. The Revolutionary Guard pointed out that it would be they who would decide "when the war ends" and maintained their attacks and threats on any vessel attempting to cross the Strait of Hormuz.

Oil and gas prices continue to fall at the open on European markets

Investors were quick to react to the comments from Donald Trump predicting an early end to the war, which translated into a drop in crude oil prices of around 10% on Tuesday, before losses narrowed to around 5%. European gas prices sank 15%, after rising as much as 30% on Monday.

Early in Europe, a barrel of West Texas Intermediate (WTI), the U.S. market benchmark, was down 8.95% to $86.29. That of North Sea Brent, the European benchmark, lost 8.85% to $90.20. Both fell more than 10% at the start of the session.

The contrast is stark compared with Monday, when prices rode $120 a barrel in Asian markets, with rises of more than 30%.

Europe continues the bullish euphoria of the stock markets at the open

The London, Paris, Milan, Frankfurt and Madrid stock exchanges continued the stock market euphoria started on Wall Street on Monday and prolonged throughout the day in Asia and were up at the start of Tuesday, with gains of more than 2% except in the case of the London trading floor (+1.63%) after the first operations.

Gains that seem to consolidate the market turnaround as seen in Asia and, earlier in the U.S. Seoul gained 5.4% at the close and Tokyo 2.9%. In the Chinese markets, Hong Kong rose 2.2% and Shanghai 0.7%.

This came after all three major Wall Street indexes closed sharply higher, after reversing initial heavy selling.

Netanyahu downplays euphoria: "We're not done in Iran yet"

The Israeli prime minister, key to deciding the end of the war as indicated by Donald Trump, downplayed the euphoria unleashed by the U.S. president's statements about a possible early end to hostilities against Iran.

The Israeli leader assured that his attack is "breaking the bones" of Iranian power. But "we are not done yet," he warned.

Iran assures they can keep the war going "as long as it takes" and rules out negotiations

Iranian Foreign Minister Abas Araqchi, assured that they are prepared to continue missile strikes "as long as necessary"and ruled out talks with Washington to end the war.

Negotiations "are no longer on the agenda," he said after U.S. President Donald Trump asserted that the war would end "very soon."

Turkey deploys Patriot defense systems in the center of the country

Turkey's Defense Ministry announced the deployment of a Patriot anti-aircraft defense system in the center of the country, a day after NATO's interception of a second missile launched from Iran aimed at its airspace.

Trump considers taking the Strait of Hormuz in the face of Iran's threat

In a telephone interview with the CBS network, Trump noted that he meditates "taking control" of the Strait of Hormuz to guarantee passage to commercial vessels in this vital artery for the world economy. The president noted that at the moment "there are already ships crossing it, but he aspires to resume the pre-conflict pace.

However, the Guards of the Revolution again insisted that they will not allow oil exports from the region for the duration of the war.

Trump threatens Iran with more " death, fire and fury" if it maintains Hormuz closure

Trump addresses Iran school attack without assigning responsibility: "Whatever the report shows, I'm willing to live with that"

Everything that's happened in the Middle East war so far, here

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