The Dow Jones (DJIA) is set to open Thursday down over 1% after President Trump’s national address on Iran failed to lift investor sentiment for a ceasefire.
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New trading tool for QQQ bullsDuring the 20-minute speech, Trump promised to hit Iran “extremely hard over the next two to three weeks” and send them “back to the Stone Ages, where they belong.” He also called on allies to help reopen the Strait of Hormuz and labeled rising gas prices as a short-term effect.
Oil Surges 8% Following Trump’s Speech
Brent crude futures (BZ), the international benchmark for oil, are up by over 8% on the day as investors price in a sustained oil supply shock from the closure of Hormuz. Trump expects the strait to “open up naturally” once the war ends, with gas prices going down and the stock market going up.
Prior to the speech, Trump was expected to criticize NATO for its lack of involvement in the war and for refusing to help reopen the strait. However, he made no mention of the global alliance organization.