Trump’s ‘economic D-Day’ claims first victim: Not Iran, but US markets

Key Points:

• US President Donald Trump has threatened an "economic D-Day" against Iran, warning of unprecedented economic warfare and sanctions on any country doing business with Tehran amid ongoing conflict.
• Following Trump's announcement, US crude oil prices rose to nearly a one-month high, while US stock markets experienced their worst losses in three weeks, with significant declines in the Dow Jones and S&P 500 indices.
• The closure of the Strait of Hormuz has disrupted global oil supplies, contributing to elevated energy prices and inflation in the US, complicating economic conditions during a critical midterm election period.
• The US Treasury announced emergency measures to stabilize markets, including doubling buybacks of long-dated debt, as investor confidence wanes amidst rising debt levels, with the total US debt surpassing $40 trillion.
• Public opposition to the conflict is growing in the US, with Trump's approval rating falling to its lowest point, as rising fuel costs and prolonged war prospects fuel domestic dissatisfaction ahead of upcoming elections.