Key Takeaways
- President Trump claims Iran’s air defenses and detection facilities have been "knocked out" following a series of military strikes, asserting that "something had to be done" after 47 years of tension.
- The U.S. is threatening to cut all trade with Spain, with Trump ordering Treasury Secretary Scott Bessent to "clear off all dealings" due to dissatisfaction with Spain's response to the Iran conflict.
- Oil markets face high volatility as the administration considers providing insurance support for tankers to ease Middle East shipments, while Trump predicts a sharp price drop once military actions conclude.
- ASM International (ASMI) reported a Q4 revenue beat of €698.0M and issued strong Q1 guidance of €830M, driven by a robust order backlog of €1.25B.
- Alphabet (GOOGL)'s Google launched Gemini 3.1 Flash-Lite, a new high-speed, cost-efficient AI model aimed at enterprise developers.
President Donald Trump intensified his rhetoric against Tehran today, describing Iran as a "bad seed" and an "evil" entity that has attacked all its neighbors. Trump stated that the U.S. military has successfully neutralized Iran's air protection and detection facilities, noting that "everything's been knocked out" and that the U.S. possesses "unlimited middle and upper ammunition" to continue the campaign.
The President also signaled a major shift in European diplomatic relations, specifically targeting Spain. Trump revealed he has instructed Treasury Secretary Scott Bessent to terminate all trade dealings with Spain following their response to the Iran situation, while also expressing dissatisfaction with the United Kingdom. Market analysts are closely watching for potential retaliatory measures from the EU as trade tensions escalate.
On the trade front, Trump reaffirmed his commitment to a 15% tariff policy, which he claims has made the U.S. "very rich." He noted that the administration is currently conducting studies on tariffs but intends to maintain the current 15% rate for at least a five-month period. Despite the aggressive stance toward Europe, Trump noted a "very good relationship" with China, stating the U.S. is no longer losing money to the nation.
The energy sector remains on edge as the conflict continues to influence global supply chains. While Trump expects oil prices to drop significantly once the "Iran action ends," the U.S. is reportedly considering oil tanker insurance support to ensure the continued flow of Middle East crude. Federal Reserve Chair Neel Kashkari noted that it is currently "too soon to know" how the burgeoning conflict will impact long-term inflation targets.
In corporate news, ASM International (ASMI) posted strong Q4 2025 results, with orders reaching €802.8M, surpassing analyst estimates of €772.6M. The company expects Q1 revenue to increase to €830M, signaling continued strength in the semiconductor equipment sector. Meanwhile, Alphabet (GOOGL)'s Google announced the rollout of Gemini 3.1 Flash-Lite, positioned as their most cost-efficient AI model to date for developers and enterprises.
Geopolitical tensions elsewhere remain high as the IDF issued evacuation warnings for residents in Tyre, Lebanon, ahead of planned strikes. Concurrently, Hezbollah claimed responsibility for firing a missile salvo at an Israeli military base in the Golan Heights. Russia’s Foreign Ministry confirmed that Foreign Minister Sergey Lavrov has held talks with his Iranian counterpart, advocating for a de-escalation of the regional crisis.
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.