Major Stock Market Correction Becomes Official, Defying Trump’s Rhetoric

(SeaPRwire) –   During his time in office, Donald Trump has ordered the capture and extradition of Venezuela’s leader, made threats to take over Greenland, considered removing the Federal Reserve chair, and launched economic attacks on key allies, while largely preventing the stock market from sliding into a downturn.

The conflict with Iran appears to be the first case where actual events have moved faster than his capacity to shape the story.

The Nasdaq 100 has dropped more than 10% from its high, officially moving into correction territory. The S&P 500 has declined for five consecutive weeks, heading toward its longest weekly losing streak since 2022. Brent crude, the international benchmark for oil futures, has surged to nearly $111 per barrel, while West Texas Intermediate (WTI) crude, the Texas-based oil futures contract, is approaching $97, edging close to the $100 mark.

On Thursday, Trump pushed back his deadline for attacking Iran’s energy infrastructure by 10 days, marking his second delay since making the initial threat last Saturday. “Negotiations are continuing,” he wrote on Truth Social after markets closed, possibly aiming to halt the decline after stocks fell amid concerns about an imminent ground war in Iran.

To date, there has been little direct negotiation, as Iranian leaders have publicly dismissed the comprehensive 15-point ceasefire plan presented by the U.S. via Pakistani intermediaries, instead responding with five impractical conditions, one of which claims control over the Strait of Hormuz.

The message failed to produce the “Truth Social impact” on oil prices that Trump had anticipated, according to energy trader John Arnold’s post on X. Market participants are growing weary of the constant chatter and remain uncertain about the credibility of Trump’s statements.

In the meantime, top White House staffers informed MS NOW that Trump has become “somewhat uninterested” in the conflict—not feeling remorse, they clarified, but simply eager to shift attention. Another official noted that the president has begun redirecting his energies toward economic matters, domestic issues, and the upcoming midterm elections. The administration’s public messaging has reflected this pivot: official White House social media profiles have used memes from Iron Man, Top Gun, and SpongeBob SquarePants to promote the military campaign, and have recently shared mysterious, unsettling posts and videos to tease an undisclosed initiative.

Unlike previous disputes, ending this war requires agreement from both sides, and Iran—having lost its supreme leader to assassination, suffered destruction of its military facilities, and seen its allied forces frightened—appears intent on prolonging the economic harm.

Up until Thursday, financial markets had shown remarkable resilience, maintaining low oil prices despite the turbulence. On Friday, ECB President Christine Lagarde cautioned that markets are “too hopeful” about the conflict’s consequences, describing the impact as a disruption “likely greater than we can currently envision.” She highlighted secondary supply chain disruptions—such as helium scarcity affecting chip manufacturing—that traders have yet to factor into prices. “Most experts are discussing timelines of years,” she stated.

However, not all observers agree with this view. Nordic American Tankers CEO Herbjørn Hansson informed CNBC that he anticipates the Strait of Hormuz will resume operations in weeks rather than months. “Vessels currently stuck in the Arabian Gulf will be able to depart relatively soon,” Hansson commented. “This assessment draws on my previous experience with comparable scenarios.”

Apollo’s chief economist Torten Slok also stated on Friday that markets are “exaggerating” the significance of temporary fluctuations, which will ultimately give way to sustained stability in oil markets and supply chains. “The fundamental point is that the disruption from Iran is insufficient to counteract the powerful positive forces driving the US economy, including AI investment, industrial renewal, and the One Big Beautiful Bill,” Slok wrote.

Yet even as Hansson presented his optimistic outlook, Iran on Friday refused entry to two Chinese-owned container vessels—ships operated by state-controlled Cosco Shipping that were forced to reverse course. China had previously been exempt from Iran’s blockade, which Tehran had claimed targeted only nations it considered aligned with the US and Israel. The rejection of Beijing’s vessels indicates that conditions at the strait are growing more uncertain, rather than stabilizing.