Trump's toughest words to overturn market expectations! Risk assets that just staged a big comeback were hit hard again, with oil and the dollar dancing once more.

In his latest warning, US President Donald Trump stated that the US will "extremely swiftly" strike Iran in the next two to three weeks. Following this, risk assets such as the stock market, cryptocurrencies, and high-yield bonds collectively turned downwards, with global stock markets that just experienced a super rally on Wednesday falling on Thursday in response. International oil prices and the US dollar index also turned upwards during Trump's speech. Trump failed to deliver the "TACO moment" that the market was expecting, leaving traders disappointed who were hoping for clearer signs of an imminent end to the war. In his highly anticipated speech on Wednesday local time, Trump emphasized that the US military had achieved a rapid and decisive victory, nearing the accomplishment of America's core strategic goals. He also stated that the US will launch extremely intense military strikes against Iran in the next two to three weeks. "The military action against Iran is expected to complete all military objectives in a very short time. In the next two to three weeks, we will launch extremely intense strikes against them... at the same time, negotiations are also ongoing," Trump said. "If no agreement is reached, we will severely attack every power plant they have." Trump once again issued harsh words towards Iran. Regarding the focus on the Strait of Hormuz dynamics, Trump declared that the US does not need oil from the Middle East, stating, "We hardly import oil transported through the Strait of Hormuz." Once the conflict ends, the strait will naturally reopen. Where is the TACO moment? The stock market did not trade according to the TACO narrative. US stock index futures quickly turned downwards after Trump's latest speech stating that the US will launch extremely intense strikes against Iran in the next two to three weeks, while the MSCI Asia Pacific stock index dropped by 2% shortly after Trump's speech began, raising doubts on whether the "TACO" buy-on-dip investment strategy was still effective. Across Asia, the South Korean and Japanese stock markets led the way in a sharp decline, with the Korean composite index plummeting nearly 5%. TACO (Trump Always Chickens Out): Originating in April 2025 during Trump's unprecedented "equal tariffs" battle, the term is used when investors bet that Trump will eventually back down or substantially weaken his policy threats, leading to a surge in the stock market after sharp declines from his threats. Amid ongoing Middle East conflict, oil markets erased previous losses and surged significantly. The Brent crude futures price surpassed $105 per barrel at one point, with intraday gains reaching 5%. At the same time, the Bloomberg dollar spot index turned higher. Some forex traders had previously stated that hedge funds had heavily bought USD put options before Trump's speech; if risk sentiment improved, these options would greatly benefit as high volatility made it difficult for even top hedge fund traders to accurately predict market movements, shifting back to a risk-off stance.