Trump’s Iran war speech keeps markets away from what they were looking for: Analysts

U.S. President Donald Trump told the nation in a televised speech on Wednesday night that the U.S. military had nearly completed the goals it had set out to accomplish in its war with Iran and that the conflict would soon be ending.

He added that the U.S. would continue to hit targets in the Islamic Republic over the next two ‌to three ⁠weeks. Stocks ⁠fell, the dollar firmed and oil rose after Trump's speech.

ALSO READ: Hormuz to ‘open naturally’, Iran will be hammered ‘very hard’: Trump sends mixed signals on war


Below are some reactions from investors and analysts --

Jon Withaar, Senior Portfolio Manager, Pictet Asset Management, Singapore

"We have no additional certainty or clarity around timeline from this address and this is what the market was looking for. The fact that we can expect 2-3 more weeks of action, boots on the ground were not ruled out and that ⁠threats to ‌hit infrastructure were reiterated will put the market back on the defensive, particularly as we come into the long weekend."

ALSO READ: Does US need Strait of Hormuz? Trump has an answer

Tony Sycamore, Market Analyst, IG, Sydney

"There was a base case here that you were going to see continued de-escalation, which we had seen over the past couple of days. By and large, we did see that, but I think the market wanted a little bit more.

"There wasn't a lot new for me.

"(The Strait of Hormuz) remains the variable in everybody's playbook.

"When you look at the stock markets we're seeing a bit of a buy-the-rumour, ‌sell-the-fact type reaction, and for crude oil the opposite."

"But now there's another two to three weeks of uncertainty hanging overhead for markets."

Kazunori Tatebe, Chief Strategist at Daiwa Asset Management, Tokyo

"There was no mention in Trump's speech about the details on when the war ends or when the passage of the Strait of Hormuz will become possible. There are still uncertainties. So the domestic equities are not going to head for a further rise. We need another step forward, like the possibility for the opening of the strait. The positive side is that the war is not going to escalate."