Trump criticized for chaotic logic after Iran speech triggers global market turmoil

U.S. President Trump’s speech on Iran sent mixed signals, triggering ongoing turbulence in global markets and drawing sharp criticism from multiple sides.

In his speech to the nation on the evening of April 1, he announced that the U.S. military plans to escalate strikes within the next two to three weeks, targeting all Iranian power plants and oil facilities, and that the U.S. does not need the Strait of Hormuz or assistance from other allies.

This unexpected hardline stance sharply increased uncertainty in the Middle East situation and stimulated market sentiment. Just hours before the speech, he had told the media that the war would end within two to three weeks. This was interpreted by Wall Street as a sign he was seeking de-escalation.

As of this report, spot gold prices fell by 4% intraday; spot silver dropped below $70 an ounce, down 6.85% for the day; Brent crude futures rose by 7%; WTI crude futures increased by 6%.

The Korea KOSPI index fell over 5% intraday, while the Nikkei 225 index closed down 2.38%, forming a stark contrast to the day before. The global energy lifeline is being cut off, and resource-scarce countries like South Korea and Japan are especially sensitive.

Major European stock indices opened lower collectively. The Euro STOXX 50 index fell 1.93%, the UK FTSE 100 declined 0.82%, France’s CAC 40 dropped 1.32%, and Germany’s DAX 30 decreased 1.51%.

Nomura Securities’ Global Market Research Director Rob Subramanian said that Trump’s speech failed to send a clear signal of easing tensions as the market hoped, and Asian currencies against the dollar might weaken; if volatility accelerates too quickly, central banks may increase intervention, which could put upward pressure on government bond yields.

U.S. Senate Democratic Leader Schumer sharply criticized Trump’s speech as vague and illogical, failing to clearly outline military targets in Iran, alienating allies, and ignoring the daily issues faced by the American people. Trump’s actions toward Iran will be regarded as one of the most serious policy failures in U.S. history.

The next decisive factor will be Iran’s response to the situation. Minutes after Trump’s speech, Iran launched missiles at Israel.

An official from Iran’s Hatam Anbia Central Command stated in a declaration that the war will continue until the enemy surrenders and feels eternal remorse. The U.S. and Israel do not have a comprehensive understanding of Iran’s military capabilities and equipment, and are unaware of Iran’s strategically significant, powerful capabilities.

Earlier on April 1, Trump claimed on social media that Iran’s “new regime president” had requested a ceasefire from the U.S., but that the U.S. would only consider a ceasefire after the Strait of Hormuz reopens. He did not specify who exactly the “new regime president” of Iran was. Subsequently, Iran’s Foreign Ministry spokesperson Bagheri dismissed Trump’s statement as completely false and baseless.

Iran operates under a theocratic system, with the constitution establishing the absolute authority and status of the Supreme Leader. After the death of Ayatollah Khamenei, Iranian authorities demonstrated high internal unity but lack a highly centralized voice channel. Administrative officials favor negotiations, while religious circles and the military advocate fighting to the end. Major resource sectors like the Strait of Hormuz are firmly controlled by the Islamic Revolutionary Guard Corps and armed forces.

On April 1, the foreign ministers of Egypt, Pakistan, Turkey, Bahrain, and Qatar held a phone consultation on regional developments. Egypt’s foreign minister emphasized that further escalation of the situation would pose a serious threat to international peace and security. Prioritizing de-escalation, diplomatic measures, and dialogue is the only way to prevent the region from falling into full chaos.

As of April 2, the U.S. and Israel’s military strikes on Iran have entered their 33rd day. The conflict has caused one of the most severe supply shortages in global energy markets in history. Gulf countries are considering building new oil pipelines to bypass the Strait of Hormuz.

A UN Conference on Trade and Development (UNCTAD) report released on April 1 indicated that, assuming the Middle East conflict does not escalate further, global merchandise trade growth in 2026 will slow from about 4.7% in 2025 to between 1.5% and 2.5%, and the global economy’s growth rate will decline from 2.9% in 2025 to 2.6%.

The International Monetary Fund, World Bank, and International Energy Agency also warned on the same day that this war is having “significant, global, and highly asymmetric” impacts, and they will coordinate responses. This underscores the urgency of ending the conflict.