Sudden collective surge! Trump: The Strait of Hormuz will create "huge wealth"

Market sentiment is a bit exuberant!

Just moments ago, U.S. President Trump said that the Strait of Hormuz will create “huge wealth.” Trump also claimed, “Iran can now start the rebuilding process.”

Japanese and South Korean stock markets extended their gains. As of the time of this release, Japan’s Nikkei 225 index is up 2,900 points, with a gain of 5.44%; South Korea’s KOSPI index is up more than 7%, SK hynix shares are up more than 14%, and Samsung Electronics is up more than 8%; Pakistan’s KSE-30 index surged 8.5%, triggering a trading halt.

The cryptocurrency market has also pushed higher. As of the time of this release, Bitcoin is up more than 4% to $71.6k, while Ethereum, Solana, Cardano (ADA), and others are up more than 6%. According to CoinGlass data, over the past 24 hours, a total of 120k traders worldwide were liquidated, with a total liquidation amount of $596 million. Of that, more than seven-tenths were liquidated short positions.

**Trump: The Strait of Hormuz will create “huge wealth” **

According to a report by Xinhua News Agency, on the 8th local time, U.S. President Trump said the U.S. will help address the Strait of Hormuz’s “shipping congestion” problem, adding that “there will be many positive actions, and huge wealth will be created.”

Trump wrote on social media: “Iran can start the rebuilding process. We will ship all kinds of supplies and ‘stay there’ to make sure everything goes smoothly.” He also claimed that this will be a “golden age for the Middle East.”

According to a U.S. media report on the 7th, Iran and Oman will collect transit fees for the Strait of Hormuz. This information has not yet been confirmed by Iranian officials.

On the 7th, United Nations Secretary-General António Guterres issued a statement through his spokesperson welcoming the two-week ceasefire announced by the United States and Iran.

Guterres urged the parties to the current Middle East conflict to fulfill the obligations they are required to assume under international law, to comply with the ceasefire terms, and to pave the way for a lasting, comprehensive peace in the region.

Guterres said the top priority is to stop hostilities to protect civilians’ lives and reduce the suffering of the public. He praised Pakistan and other relevant countries for the efforts they are making to facilitate this ceasefire. The Secretary-General’s Personal Envoy Jean Arnault is currently in the region to support various efforts aimed at achieving lasting peace.

**Global markets surge! Analysts’ latest take **

On April 8, as Iran and the United States reached a two-week ceasefire agreement, the market saw a round of a relief rally (a brief rebound in response to positive news). Oil prices fell sharply, stock markets surged, and the U.S. dollar came under pressure and retreated. The market is hoping that oil and natural gas transportation through the Strait of Hormuz can resume.

As of the time the reporter from Securities Times China filed this report, the Nikkei 225 index is up more than 5%, and South Korea’s KOSPI index is up more than 7%; Pakistan’s KSE-30 index surged 8.5%, triggering a trading halt. MSCI’s broadest equity index in the Asia-Pacific region excluding Japan is up 4%; S&P 500 index futures are up 2.50%, and Nasdaq 100 index futures are up more than 3%.

Earlier, in late February, the United States and Israel launched attacks on Iran, pushing tensions to the brink. Iran effectively blocked this strategic waterway that carries about 20% of global oil and natural gas shipments. The ceasefire news brings an end, at least for now, to the phase of financial-market volatility lasting for weeks and the ongoing geopolitical turmoil.

In addition to the immediate relief rally, investors remain keenly focused on whether the ceasefire can lead to a broader solution before making major bets.

Martin Whidden, Head of Financial Markets Strategy at Westpac, said: “Does this mean people will take on new risks? No, that’s not the case. In fact, it requires lasting peace to change the situation. People aren’t really taking on risk.”

Market watchers said that while the ceasefire agreement is good news for traders on Wall Street and elsewhere, for a market that has been parsing every geopolitical headline to gauge how long the conflict will last, calling off the alarm now may still be too early.

Chalu Chanaran, Chief Investment Strategy Officer at St. James’s Place? (Founders?), said the key test is whether talks can continue to move forward over the next two weeks, and whether insurance companies and tanker operators can regain enough confidence to restore normal shipping through the Strait of Hormuz. This will determine whether this is merely a relief rally or the beginning of what looks like a sustained downgrade of the situation.

Stuart Kaiser, Head of U.S. Equity Trading Strategy at Citigroup, said: “A delay in attacks on Iran’s civilian infrastructure, and the suspension of (at least) two weeks of military action—if these are maintained—would be a significant near-term positive for risk assets. However, there is a great deal of uncertainty regarding the details and persistence, because both sides’ statements depend on the other side’s actions.”

Some analysts still doubt whether the ceasefire can be converted into lasting peace, warning that there may still be twists and turns ahead. Carroll Koon, a foreign exchange strategist at the Commonwealth Bank of Australia, said the root cause of the conflict has not been resolved, and the risk of the situation escalating again remains. “We still think the war will last until June. That means the dollar’s decline may turn out to be temporary,” Roel Koon added.

（Source: Securities Times China）