Trump Calls Iran 'Islamic Republic of Japan' as Oil Surges 5% and Stocks Crash

President Donald Trump told reporters that the US-Iran ceasefire is now over, adding, “I don’t want to have anything to do with them anymore; they’re scum.” The comments triggered a swift reaction across global financial markets, wiping out approximately $500 billion from U.S. stock markets within hours.

During a NATO Summit, Trump referred to Iran as the “Islamic Republic of Japan” while discussing an attack on a U.S. aircraft carrier. He warned that the U.S. military could destroy all of Iran’s bridges, disable its electrical grid, and destroy its desalinization plants in one day. He also mentioned Kharg Island, Iran’s main oil export port, which the U.S. struck the night before and could end up controlling.

Oil prices surged 5%, testing the $75 resistance level. Analysts noted that a close above $72 could push prices toward $78. In equities, the S&P 500 fell 1%, the Nasdaq 100 dropped 1.5%, and the Dow Jones lost 1.3%. Gold declined 2.5% from $4,100 to $4,030.

Crypto markets followed the downturn. Data from CoinGlass shows 137,023 traders were liquidated in the last 24 hours, totaling over $385 million in liquidations. Bitcoin, which had been retracing from $64,000 resistance after an oil tanker attack in the Hormuz Strait, now faces support at $61,500. Further escalation could push Bitcoin toward $59,500.

The threat to Kharg Island is the key focus moving forward. Disrupting Iran’s main oil export terminal would tighten global oil supply and drive prices higher. If US-Iran tensions continue to escalate, further declines in stocks and crypto are possible.

Source: https://coingape.com/trump-calls-iran-islamic-republic-of-japan-as-oil-surges-5-and-stocks-crash/