An electronic quotation board displays the Nikkei 225 stock prices on the Tokyo stock Exchange in Tokyo on Nov. 5, 2025.
Greg Baker | Afp | Getty Images
Asia-Pacific markets dropped Thursday, reversing earlier gains, as oil spiked following U.S. President Donald Trump’s speech on the Iran war.
During his speech, Trump reiterated that the U.S. objectives in Iran were almost met and said that “we have all the cards” in the conflict. He also said that Washington will hit Iran “very hard” over the next two to three weeks.
Early Wednesday stateside, Trump claimed that Iran’s “New Regime President” had asked the U.S. for aย ceasefire, a claim that Tehran has denied. Trump added that the U.S. will “consider” the offer only once theย Strait of Hormuzย was “open, free, and clear,” he said onย Truth Social.
Trump previously said he was willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remained closed, according to a report by the Wall Street Journal.
Oil prices spiked following the address, with U.S. crude futures rising 6% to $106.39 and global benchmark Brent gaining 6.7% to $107.97.
South Korea’s Kospi dropped 4.47% and settled at 5,234.05, leading Asian losses, and the small-cap Kosdaq was down 5.36% to 1,056.34. Both the indexes had opened more than 1% higher.
Japan’s Nikkei 225 fell 2.38% after Trump’s address, closing at 52,463.27, while the Topix fell 1.61% to 3,611.67.
Australia’sย S&P/ASX 200 started the day in positive territory, but fell 1.06% to finish at 8,579.5.
Hong Kong’s Hang Seng index fell 1.41%, while the CSI 300 index on mainland China lost 1.35%.
Indian markets opened lower after Trump’s speech, with the Nifty 50 down 1.9% and the Sensex falling 2.1%.
“Markets reacted negatively because, while Trump says it is nearly over, he is sending the third aircraft carrier and more troops to the region so it is hard to believe his words,” Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis, told CNBC.
U.S. stock futures fell, with S&P 500 futures and Nasdaq-100 futures down over 1%. Dow futures were down 439 points, or 0.94%.
Overnight in the U.S., theย S&P 500ย advanced 0.72%, and theย Nasdaq Compositeย gained 1.16%. Theย Dow Jones Industrial Averageย added 0.48%.
โCNBC’s Lisa Kailai Han and Sean Conlon contributed to this report.
