Global markets were in turmoil on Friday due to news that the US would send ground troops to Iran. Stock markets fell sharply, while oil prices rose. After the markets closed, Trump's statement that "operations will be reduced" led to a recovery in futures trading. However, Trump ultimately gave Iran 48 hours to open the Strait of Hormuz. During this period, global markets focused on developments related to the war with Iran. Statements made by US President Donald Trump continued to influence pricing. News that the US was preparing to send ground troops to Iran caused sharp declines in global stock markets on Friday, while the price of Brent crude oil approached the $110 mark. On Wall Street, the Dow Jones Index fell 0.96% on Friday, and the S&P 500 Index fell 1.51%. Gold continued its decline, with the price per ounce falling another 3.5% and dropping below $4,500. Silver prices experienced an even sharper decline, falling 6.8%.
After a complete "Black Friday" for the markets, Trump continued to make statements. While on one hand he said he did not want a ceasefire with Iran, on the other hand he stated that they were considering gradually reducing operations and were very close to achieving their goals. His statements regarding the Strait of Hormuz are of primary importance in the trajectory of oil prices. President Trump stated that the Strait of Hormuz should be protected and controlled as necessary by other nations using it. 24 hours after this statement, Trump gave Iran 48 hours to open the Strait of Hormuz, threatening to strike its power plants otherwise. The US Treasury Secretary, meanwhile, announced the issuance of a limited, short-term authorization allowing the sale of Iranian oil currently at sea, stating that this step would temporarily unlock the existing supply for the world, allowing the US to quickly provide approximately 140 million barrels of oil to global markets.
These statements by Trump brought to mind his recent declaration that "the war with Iran is largely over." Following the aforementioned statement, markets showed a rapid recovery trend, with stock markets rising and oil prices falling. Trump's statement on Friday that "operations will gradually decrease and they are very close to the target" caused a rapid recovery in futures trading. However, concerns remain about whether Trump will make a contradictory statement before or after the markets open. The trajectory of oil prices is being closely monitored in terms of how it will affect Turkey's inflation fighting program. The continued high level of oil prices strengthens the view that interest rate cut decisions may be postponed.
