President Trump Stokes Market Nervousness With Iran Ultimatum, Warns ‘A Whole Civilization Will Die Tonight’

• Despite the warning, President Trump framed the developments as an opportunity for progress, while adding that a complete regime change had occurred in Iran.
• U.S. military operations on Tuesday targeted military sites on Iran’s Kharg Island, a key oil export hub.
• Following Trump’s statements, crude oil prices surged, with West Texas Intermediate (WTI) for May delivery jumping over 2% to more than $115 per barrel.

U.S. President Donald Trump sent markets into a state of high alert on Tuesday after he issued a dire warning to Iran that it could face catastrophic consequences, describing the situation as a pivotal moment in global history. 

“A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will,” President Trump said in a post on Truth Social.

Potential for Positive Change Amid Tensions

However, he also suggested that new leadership in Iran could pave the way for unprecedented positive developments. He framed the shift as both a warning and a source of hope, suggesting that people will witness either catastrophe or considerable progress.

Trump claimed that a “Complete and Total Regime Change” had occurred in Iran, suggesting that a new, less radical leadership might open the door to unprecedented opportunities. 

Kharg Island Attack And Effects On Energy Markets 

According to a Reuters report, U.S. military operations on Iran’s Kharg Island on Tuesday morning triggered global attention, though officials emphasize that these actions do not mark a change in Washington’s broader approach. The strikes targeted military sites and did not affect oil export facilities, said the report. 

President Trump has set an 8 p.m. ET deadline for Iran to abandon nuclear ambitions and reopen the Strait of Hormuz, a strategic passage for global oil shipments.

However, crude markets reacted sharply to Trump’s statements. West Texas Intermediate (WTI) crude futures with May expiry jumped over 2% to more than $115 per barrel, while Brent crude futures expiring in June rose nearly 1% to $111 per barrel. 

U.S. equities declined on Tuesday. The Dow Jones Industrial Average (DJIA) index dropped over 0.6, while the S&P 500 and the Nasdaq composite index were both down 0.5%.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, dropped 0.4%, and the Invesco QQQ Trust ETF (QQQ) fell 0.5%. Retail sentiment on Stocktwits around the S&P 500 ETF was in the ‘extremely bearish’ territory.

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