Trump's escalation threats trigger emerging market selloff. President Donald Trump's Wednesday address warning of intensified strikes on Iran within two to three weeks sent shockwaves through global markets. Indian equities plummeted with Sensex falling 1,400 points and Nifty dropping 2% as investors abandoned hopes for swift conflict resolution. Emerging market Asia equities tumbled 2.3% on the uncertainty. Oil prices surged 5% to $105 per barrel while the dollar strengthened, compounding pressure on Asian currencies and markets already facing foreign outflows. Analysts warn that extended conflict threatens fuel supplies through the Strait of Hormuz, critical for Asian energy imports. The inconsistency in Trump's messaging has created volatility across regional markets from South Korea to Singapore, with investors grappling with geopolitical uncertainty and its economic implications.
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