Trump Offers No New Iran Signals; Markets Cautious

Trump declared US operations largely successful, indicating a potential wind-down within 2-3 weeks while retaining the option for further targeted strikes. Crucially, the speech provided no new clarity on reopening the Strait of Hormuz, a key market-sensitive issue, nor did it confirm earlier speculation about US ground troop deployment.

Divergent messaging persists regarding a ceasefire, with Trump suggesting Iran seeks one, while Tehran publicly denies direct negotiations. The absence of a clear de-escalation framework means geopolitical risk remains embedded, supporting oil prices and weighing on risk assets.

Market reaction saw the US dollar strengthen against major currencies, including the euro, sterling, Australian, and New Zealand dollars, while USD/JPY edged higher. Equity futures for the S&P 500 and Nasdaq moved lower, and oil prices ticked higher, reflecting a cautious investor response to the unchanged geopolitical outlook.