A geopolitical black swan slammed global financial markets on Tuesday.U.S. President Donald Trump publicly declared that the U.S. military is prepared to "hit Iran hard" later today, sending shockwaves through Wall Street and triggering a dramatic risk-off move.
Trump Issues Ultimatum: 'We Will Hit Iran Hard Today'
According to a breaking alert from The Kobeissi Letter, Trump said bluntly: "If you don't have the TV on, we will hit Iran hard today." The explicit timing of a potential strike caught traders off guard, prompting a rush into safe havens and a broad selloff in risk assets.
Stocks Tumble as Panic Selling Erupts
Equity markets, which had been trading in a narrow range, collapsed within minutes of Trump's remarks.The three major U.S. stock indexes and futures fell sharply, breaking key technical levels and setting new intraday lows. The CBOE Volatility Index (VIX) spiked as trading volume surged.
Investors are now watching for any official confirmation of military action. If a full-scale confrontation materializes, oil prices could soar and global risk assets would face further pressure. For now, uncertainty reigns as the market digests the sudden escalation in rhetoric.