Global Markets React to U.S.-Iran Conflict Resolution Prospects

U.S. President Donald Trump announced plans to conclude military actions against Iran within two to three weeks, while Iran's President expressed willingness for peace talks, boosting investor sentiment and causing significant rebounds in U.S. and Asia-Pacific stock markets. According to Ming Pao, Wong Bi, Dean of the Austrian Economic Institute in Hong Kong, advised caution regarding the sharp rebound in U.S. stocks. He noted that even if both parties cease fire immediately, damaged oil facilities will require time for repairs, and the impact of strait blockades will not dissipate quickly. The effect of rising oil prices varies across countries. For the United States, the primary issue is price, which can be addressed by spending more. However, Asia and Europe face severe supply challenges, as soaring oil prices increase manufacturing and transportation costs, and even with financial resources, securing sufficient oil may be difficult.