Global financial markets were thrown into fresh turbulence on Thursday as oil prices surged and stock markets tumbled following renewed threats against Iran by former US President Donald Trump.

In a televised address, Trump warned that US forces would intensify military action against Iran over the next two to three weeks, but offered no clear pathway to resolving the ongoing crisis or reopening the critical Strait of Hormuz.

Oil Prices Jump on Supply Fears

The uncertainty sent crude oil prices sharply higher, with Brent crude climbing nearly seven per cent to over $108 per barrel, while West Texas Intermediate rose more than six per cent to above $106.

Market analysts said the spike reflects growing fears over disrupted energy supplies, particularly as the closure of the Strait of Hormuz continues to choke global oil flows.

Investors Rattled by Lack of Clarity

Trump’s speech failed to reassure investors, as he reiterated tough rhetoric without outlining a concrete resolution to the conflict.

“Over the next two to three weeks, we are going to bring them back to the Stone Ages,” he said, adding that US forces would achieve their objectives “very, very shortly.”

Analysts noted that markets had earlier shown signs of recovery after hints that the war could end soon, but the latest remarks dashed those expectations.

Global Stocks Slide

Equity markets across Asia and Europe fell sharply in response:

• Seoul dropped over 4%
• Tokyo, Hong Kong, and Shanghai recorded significant losses
• Major European markets in London, Paris, and Frankfurt also declined

The sell-off highlights investor anxiety over prolonged conflict and its potential economic fallout.

Rising Global Economic Concerns

The crisis has sparked broader concerns about inflation, supply chain disruptions, and economic stability worldwide.

The World Bank warned of potential impacts on jobs, food security, and global growth, while governments are already considering emergency measures to cushion the effects.

Meanwhile, UK Prime Minister Keir Starmer is hosting talks with dozens of countries to explore diplomatic options for reopening the Strait of Hormuz and restoring global energy flows.

Volatility Set to Continue

Market experts say volatility is likely to persist as long as uncertainty surrounds the conflict.

With no clear end in sight and oil supply tightening, investors remain on edge, watching closely for any diplomatic breakthrough or further escalation.