Key Takeaways
- President Trump declared "Operation Epic Fury" successfully concluded, claiming Iran’s naval and air capabilities have been "completely destroyed" and its military crippled to an extraordinary degree.
- Gold (GOLD) prices reversed a two-week rally, slipping 0.6% to $4,728.79 per ounce during the President's address as safe-haven demand fluctuated.
- Trump dismissed recent gasoline price hikes as "short term," asserting that the U.S. no longer requires oil from the Middle East and that the Strait of Hormuz is not necessary for U.S. operations.
- Regional instability persists as the United Arab Emirates air defenses intercepted drone and missile threats over Dubai, while rockets were reported in northern Israel.
President Trump announced on Thursday that the United States is nearing the completion of all military objectives in Iran under Operation Epic Fury. He stated that the "hard part" of the operation is finished, claiming that the Iranian regime’s leaders have been largely eliminated and its ability to threaten the U.S. has been directly neutralized.
The President emphasized that Iran will never be allowed to possess nuclear weapons, calling the previous nuclear deal a "flawed agreement" that his administration has now rectified. He further noted that U.S. forces have heavily damaged rocket and drone launch sites, rendering the Iranian navy and air force non-existent or crippled.
Financial markets reacted immediately to the speech, with Gold (GOLD) falling into negative territory to trade at $4,728.79 an ounce. Market sentiment appeared to shift as the President signaled a quick end to the conflict, despite earlier concerns that had driven a two-week rally in precious metals.
In the currency and bond markets, the USD/INR 1-month non-deliverable forward stood at 93.70, down from a prior session end of 94.83. Meanwhile, the 10-year Japanese Government Bond (JGB) yield ticked up to 2.310% amid broader fiscal and inflation concerns. Analysts at UBS (UBS) suggested the USD/JPY could rise toward 175 if oil disruptions are more extended than the administration predicts.
Regarding energy costs, Trump described the recent surge in gasoline prices as a temporary spike that would be "short-lived." He maintained that the Strait of Hormuz would naturally become accessible again once the conflict is fully resolved, though he reiterated that the U.S. is no longer dependent on Middle Eastern energy exports.
Despite the claims of military success, active threats were reported in the region as Emirati air defenses responded to missile and drone "threats" over the UAE. Dubai authorities confirmed that sounds heard across the city were the result of successful interceptions, while Israeli reports indicated that rockets fired toward the north struck open areas with no casualties.
Trump concluded his remarks by thanking Gulf partners for their support during the campaign. He also revised the estimated death toll of Iranian protesters to 45,000, up from a previous figure of 32,000, citing the regime's internal crackdown during the period of hostilities.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.