Asian shares declined sharply on Thursday after US President Donald Trump's prime-time address on the Iran war failed to provide a clear path to ending the conflict, sending oil prices higher. Japan's Nikkei index fell 1.9 percent, the first major market to trade after US markets closed, reflecting investor anxiety over prolonged instability in the Middle East.
Brent crude oil jumped nearly 5 percent to $105 per barrel during Trump's speech, as he offered no assurances on reopening the Strait of Hormuz, a critical waterway for global oil shipments. The national average US gasoline price has risen to $4.06 per gallon, up from $2.90 before the war began, according to AAA.
In his address, Trump struck an optimistic tone on the economy but blamed high gas prices on Iranian attacks on commercial vessels. He urged countries reliant on the Strait of Hormuz to 'take it' and protect the passage themselves, stating that 'the hard part is done' and that Iran would eventually need to sell oil to rebuild.
Despite Trump's claims of success, the US military continues to build up forces in the region. The USS Tripoli arrived in the Middle East with around 5,000 sailors and Marines, and additional vessels and paratroopers from the 82nd Airborne are heading to the area. The UAE is reportedly prepared to help secure the Strait, while European allies have refused to be drawn into the conflict.
US futures also fell, with the Dow dropping 1 percent, the S&P 500 down 1.1 percent, and the Nasdaq sliding 1.4 percent. Conservative commentator Ann Coulter mocked the speech, sharing a graph of the oil price spike on social media.
