Global Stocks Rally as Trump Signals Iran Strikes May Be Short-Lived

Asian markets bounced back sharply on Thursday after a rough start to the week, as bond yields and oil prices eased following comments from President Trump suggesting the latest round of US military action against Iran would not last long. Trading had been rattled since US strikes on Iranian targets near the Strait of Hormuz triggered a series of retaliatory exchanges, briefly sending crude oil prices surging by as much as 10 percent.

The Strait of Hormuz, which handles roughly a fifth of the world’s oil and gas transit, had seen relative calm before the latest escalation, which reignited fears of rising inflation and added pressure on central banks worldwide to raise interest rates.

Trump’s Comments Ease Investor Nerves

When asked how long the bombing campaign might continue, Trump told reporters he did not expect it to drag on much longer, a statement that helped calm market sentiment. Separately, US officials reported that military escorts helped guide dozens of commercial vessels carrying millions of barrels of crude safely through the strait, marking a wartime high for oil movement.

Weak Economic Data Adds to Market Relief

Softer than expected US jobs data also eased concerns about further Federal Reserve rate hikes, giving both stocks and bonds room to recover ahead of key upcoming economic reports, including Friday’s payrolls figures and next week’s inflation data.