Asian shares fell sharply on Thursday, erasing the previous session’s gains, as investors reacted to mixed signals from US President Donald Trump about a possible easing of tensions in the Middle East. Trump said the war in Iran was “very close” to being concluded and that he expected its objectives to be met in the coming weeks, yet he also warned that military operations could intensify. At the same time, he pointed to ongoing diplomatic efforts, leaving investors uncertain about the overall outlook for global markets.
The speech fell short of market expectations. Optimism that had built up ahead of his remarks quickly faded, and investor confidence, previously buoyed by hopes of de-escalation, began to deteriorate. Adding to the uncertainty, Trump recently asserted that Iran had requested a ceasefire, a claim that Iran’s foreign ministry promptly rejected as “false and baseless.”
