Amid the ongoing escalation of the Middle East conflict, U.S. President Trump issued an urgent warning at the G7 Summit in Canada on Monday, urging "everyone to evacuate Tehran immediately" and reiterating that Iran must accept the nuclear agreement conditions he proposed. Meanwhile, Israel vowed to continue strikes on Iran's missile and nuclear facilities, pushing the entire Middle East to the brink of unprecedented turmoil.
Trump Issues Stern Warning, Israel's Intense Airstrikes Continue
Trump wrote on social media: "Iran must sign that agreement... everyone should evacuate Tehran immediately." This remark was widely interpreted as a potential indication of intelligence pointing to a major military operation. Just hours before Trump's statement, Israel had warned several Tehran communities to evacuate, and indeed, multiple explosions occurred in the eastern part of the city thereafter.
Earlier at the G7 meeting, Trump hinted: "Once I leave here, we will do something." This has fueled speculation about a possible collaborative expansion of military action by the U.S. and Israel.
Israeli Prime Minister Netanyahu stated, "Iran must completely abandon its missile and nuclear capabilities," and emphasized that "after giving them a 60-day opportunity," there is no other choice. Currently, the Israeli military claims to have seized control of Iran's primary airspace and disrupted several of its key military facilities.
Iran Vows Retaliation, Middle East on the Brink of All-Out War
Iranian President Pezeh Khizyan told Turkish President Erdoğan: "We do not want the conflict to escalate, but any attack will be met with a retaliation that Israel will regret." The Iranian Foreign Ministry also reiterated that negotiations had not ceased, but emphasized that the current focus is on "making Israel pay the price."
Reports indicate that since last Friday, 224 Iranians have been killed, with Israel reporting 24 deaths and 592 injuries. The conflict is intensifying, with no signs of alleviation.
Gold Surges, Oil Fluctuates, Market Tensions Rise Sharply
As the conflict escalates, safe-haven assets are quickly being sought. Gold prices surged nearly 3% within 24 hours, breaking the $2,400 per ounce psychological threshold to hit a historic high. Investors are concerned that if the conflict affects the Strait of Hormuz, it will cause a complete chaos in the energy supply chain.
Oil prices have been more complex. Following a Wall Street Journal report that Iran is willing to reopen negotiations with the U.S., Brent crude futures briefly fell by 4% to around $85, but the market quickly recovered these losses. Overall, the oil market remains highly sensitive to every new clue about the war situation and diplomatic dynamics.
U.S. Treasury prices rose briefly before falling back, while European bonds remained strong, reflecting global funds reassessing their risk allocations.
U.S. Stock Futures Under Pressure, Defense Stocks May Benefit Again
U.S. stock index futures edged lower following the news release, with S&P 500 futures down 0.5%. However, defense stocks could become short-term beneficiaries, with companies like Raytheon and Lockheed Martin possibly attracting capital interest. Additionally, gold ETFs and safe-haven currencies such as the Swiss franc and the yen have shown clear buying signs.
Market analysts point out that if the Trump administration takes further military action, global market volatility will increase significantly, with Asia and emerging markets potentially being the first affected.
War Signals Emerge, Market Reaches Critical Turning Point
From Israel's intensified airstrikes to Trump's evacuation warning, every escalation in the Middle East situation is shaking global financial markets. Investors need to closely monitor subsequent U.S. military actions and any diplomatic breakthrough opportunities. Gold, energy, and defense stocks will remain key observation points amid rising geopolitical risks.
