U.S. President Donald Trump escalated his rhetoric against Iran on Tuesday, issuing a direct threat to the country’s leader, Ayatollah Ali Khamenei, and calling for him to surrender.
Context of the Remarks
Trump made the comments on Truth Social after meeting with his top national security advisors in the Oval Office. According to current and former administration officials speaking with NBC News, a U.S. military strike against Iran is one of the options being considered by Trump.
Impact on Financial Markets
The president’s remarks have had an impact on financial markets:
- U.S. stocks retreated on Tuesday as his comments about Iran intensified:
- S&P 500 fell by 0.84%
- Dow Jones Industrial Average shed 0.7%
- Nasdaq Composite lost 0.91%
In contrast, Asia-Pacific markets were mixed Wednesday morning despite concerns about global economic trends triggered by rising tensions between Washington and Tehran.
Market Reactions in Asia
Japan’s Nikkei 225 rose by 0.77% despite a decline in exports in May. Investors focused more closely than usual this week due to Japan hosting two major summits:
- The G7 summit that ended Monday night at Hiroshima city’s Shukugawa Park near Osaka Bay.
- A gathering later this week of leaders from Association of Southeast Asian Nations (ASEAN) countries starting Thursday at Yoyogi Park in Tokyo’s Shibuya ward.
Trump’s Statements
Trump posted, "We know exactly where you are hiding," before departing for home early from the G7 summit in Hiroshima. He later added, "Surrender!"
He clarified that his actions have nothing to do with establishing a ceasefire but rather something much bigger: "This has NOTHING TO DO WITH A CEASE FIRE! I am involved in something MUCH BIGGER THAN THAT."
The White House did not immediately respond when asked if Trump was referring specifically to military action or some other type of operation against Iran.
Iranian Response
Iranian Foreign Ministry spokesman Nasser Kanani stated earlier this month that any attack would be met with retaliation but did not elaborate further. He said during an interview broadcast live by Iranian state television IRIB1, "We will take revenge."
Iran has been accused of providing drones used recently by Russia for attacks inside Ukraine.
Current Situation
It remains unclear whether there are any specific plans for such an attack or if it would happen soon. A senior U.S. official told NBC News last week that there was no plan yet for any kind of military action against Iran.

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