Crude oil rose to over $100 a barrel while Bitcoin fell 2% after a national address by US President Donald Trump on the conflict in Iran, where he vowed to hit Iran “extremely hard” over the next few weeks.
Speaking at the White House on Wednesday during an address to the nation, Trump said the US military is “very close” to finishing “Operation Epic Fury,” claiming to have wiped out Iran’s nuclear and naval capabilities while also significantly hampering its drones, missiles and weapon factories.
“I can say tonight that we are on track to complete all of America’s military objectives shortly. Very shortly, we are going to hit them extremely hard over the next 2 to 3 weeks.”
Stocks, crude oil, and crypto prices have been impacted by conflict in the Middle East over the last few months. Oil prices eased on Tuesday after Trump said the war would be wrapping up in the next few weeks, though his latest speech has seen it rise again.
At the time of writing, the price of crude oil has spiked back above $100 a barrel to $103.59 per barrel. Meanwhile, Bitcoin dipped by around 1% over the course of the speech and has since fallen further to $66,904.
However, Trump also said discussions are ongoing. Both sides have made key demands for ending the conflict, with the US pushing for Iran to dismantle its nuclear programs, open up commercial shipping channels and stop regional support for proxy groups.
Iran wants a permanent end to the war, compensation for damages and an end to US military presence in the region, among other demands.
“The new group is less radical and much more reasonable. Yet, if during this period of time no deal is made, we have our eyes on key targets.”
Trump says oil blockade will end soon
Conflict in the Middle East intensified in February after the US and Israel launched strikes against Iran. This ultimately saw Iran respond by leading a blockade of the Strait of Hormuz in a bid to cut oil supply on one of the world’s busiest shipping channels.
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The president claimed that the stock market will pick back up soon as the conflict begins to wind down, while gas prices will drop as he argued that Iran will remove the blockade “naturally” so that it can start rebuilding the economy.
“And in any event, when this conflict is over, the strait will open up naturally. It’ll just open up naturally. They’re going to want to be able to sell oil because that’s all they have to try and rebuild. It will resume flowing and the gas prices will rapidly come back down. Stock prices will rapidly go back up,” he said.
