Just now! Price surge triggers circuit breaker! Asia-Pacific stock markets make a big comeback! Trump announces: sanctions will be lifted!

Major Reversal.

Following U.S. President Trump’s declaration that the conflict is essentially over, financial market sentiment was significantly boosted. This morning, after the opening of the Japan and South Korea stock markets, major indices surged across the board, with the Korea Composite Index soaring over 5% at one point, and the Nikkei 225 Index rising over 3%. The Korea Exchange triggered the KOSPI index circuit breaker after KOSPI 200 futures jumped 5%, pausing automated trading for five minutes. Overnight, the three major U.S. stock indices all closed higher, with the Nasdaq up 1.38%, and tech stocks broadly rising.

According to Xinhua News Agency, on the 9th, U.S. President Trump stated at a press conference that he would lift some oil-related sanctions to stabilize oil prices. Trump also said that if the timing is right, the U.S. Navy will escort ships through the Strait of Hormuz.

Meanwhile, Iran’s top national security official, Ali Larijani, warned on the 9th that as long as the U.S. and Israel continue military strikes against Iran, the security of the Strait of Hormuz cannot be restored.

Trump: Sanctions to be lifted

On the morning of March 10, Beijing time, the stock markets in Japan and South Korea opened sharply higher, with the Korea Composite Index up over 5% at the open, and the Nikkei 225 Index opening about 1.5% higher, then quickly expanding gains to over 3%. The MSCI Asia Pacific Index rose 1.3% to 238.80 points.

Analysts pointed out that as Trump hinted that the conflict is “basically over,” and G7 finance ministers indicated possible measures to curb oil prices, market panic dissipated. Short covering and bargain hunting jointly drove risk assets to rally strongly late in the session.

On March 10, Xinhua News Agency reported that President Trump said at a press conference that due to market turmoil caused by U.S. and Israeli attacks on Iran, he would lift some oil sanctions to stabilize prices.

He did not specify details, but it is understood that the U.S. issued a 30-day temporary exemption last week, allowing Russian oil currently stranded at sea to be sold to India.

Trump also said that the conflict with Iran will “end soon,” but “not” within this week.

Regarding navigation through the Strait of Hormuz, Trump stated that if Iran affects global oil supplies, the U.S. will respond more forcefully; and if the timing is right, the U.S. Navy will escort ships through the Strait.

Trump noted that international oil prices rose less than he expected, and he anticipated energy prices would increase before initiating action against Iran.

Additionally, Trump mentioned Venezuela, his call with Russian President Putin on that day, the Russia-Ukraine conflict, and issues related to Cuba.

Before the press conference on the 9th, Trump also spoke in another media interview about Iran’s newly appointed Supreme Leader, Ali Khamenei, expressing again that he was “not happy” and calling it a “huge mistake.”

Furthermore, to address the energy supply crisis, French President Macron, during a visit to Cyprus on the 9th, announced that France would maintain military presence in the Mediterranean and Red Sea, including deploying aircraft carriers and multiple warships, with the potential scope extending to the Strait of Hormuz to ensure regional shipping safety and European interests.

Stuart Katz, Chief Investment Officer of Robertson Stephens, said: “Looking back over the past few decades, major geopolitical events typically cause markets to fall by 5% to 10% from peak to trough. However, within 12 months after these trigger events, markets are usually on the rise.”

Anshul Sharma, Chief Investment Officer of Savvy Wealth, stated: “Historically, geopolitical shocks cause sharp short-term market volatility, but rarely have a substantial impact on long-term profit trajectories.” In other words, post-event, geopolitical uncertainty periods often present buying opportunities because the reasons for stock price declines are unrelated to the company’s long-term growth prospects.

Iran’s Warning

On March 10, according to Xinhua News Agency, Iran’s top national security official, Ali Larijani, said that as long as the U.S. and Israel continue military strikes against Iran, the security of the Strait of Hormuz cannot be restored.

Larijani commented on social media regarding French President Macron’s remarks about the Strait of Hormuz, saying, “In the fires ignited by the U.S. and Israel, any security in the Strait of Hormuz is unlikely,” especially as some actions are fueling escalation.

Earlier that day, Macron stated that France and its allies are prepared to undertake a “defensive” naval operation aimed at restoring normal navigation through the Strait of Hormuz.

Senior officers of Iran’s Islamic Revolutionary Guard Corps recently stated that Iran has “not closed” the Strait of Hormuz, but any ships belonging to the U.S. or Israel will become targets.

On February 28, the U.S. and Israel launched large-scale military operations against Iran, prompting Iran to retaliate against Israeli and U.S. military bases in the Middle East.

According to CCTV News, on the afternoon of March 9, Iran’s Islamic Revolutionary Guard Corps announced the launch of “Real Commitment-4” rounds 31 and 32, using multiple heavy missiles, with less than two hours between the two announcements. According to Israeli military data released late on the 9th, Israel recorded 10 Iranian attacks that day.

Preliminary statistics indicate that Iran’s actions on the 9th included: shooting down over 82 U.S. and Israeli drones and four F-15 fighters; destroying multiple radar facilities; shooting down an advanced U.S. cruise missile, the Joint Air-to-Surface Standoff Missile (JASSM); and “destroying” a U.S. helicopter base in Udairi, Kuwait.

(Source: Securities Times)