Australian markets: Shares sink, oil jumps as Donald Trump warns on extended Iran war
The US President disappointed investors hoping for a quick resolution to the conflict now in its fifth week.
Australian shares turned lower and oil jumped on Thursday lunchtime after US President Trump warned its war on Iran will last another two to three weeks and may include bombing of the nation’s oil infrastructure.
The S&P/ASX 200 traded up 0.2 per cent immediately prior to the speech at 8700 points but quickly dropped 67 points to a 0.4 per cent fall on the threats that dashed the market’s hopes of an imminent peace deal.
Benchmark Brent Crude prices also jumped 3 per cent after the speech to $US104.91 a barrel, with US WTI Oil adding a similar amount to $US103.41 a barrel.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.US share futures also swung sharply lower to point to a 1 per cent fall for the tech heavy Nasdaq Index at the open, versus expectation for a 0.1 per cent gain prior to the speech.
“I can say tonight we’re on track to complete all of America’s military objectives very shortly, we’re going to hit them very hard over the next two to three weeks and bring them back to the stone age,” President Trump said.
The President also suggested in the speech that stock markets had not fallen as much as may be expected and claimed they would soon come roaring back in line with the US economy like never before.
The Australian dollar also dropped from buying $US69.5 cents before the speech to $US68.5 cents afterwards.
More to come.
