Trump says “Sometimes you fight to win” as Israel-Iran tension rattles markets

[Unblock Media] U.S. President Donald Trump stated on Sunday that he hopes for an agreement between Israel and Iran, but also emphasized, "Sometimes you need to fight to win," as reported by Yonhap News. This remark comes amid escalating military exchanges between the two nations, raising concerns about geopolitical risks in the global market. The Middle East is a crucial region, accounting for one-third of the world's oil supply, and any prolonged instability could disrupt crude oil exports, particularly through the Strait of Hormuz, which handles 20% of global oil shipments. ### Market Reaction Following the statement, reports surfaced of increased Israeli aerial activity over the Golan Heights. As a result, Brent crude prices rose by over 2.5%, nearing $94 per barrel, while the CBOE Volatility Index (VIX) surged 14% during early trading. U.S. stock futures fell, reflecting a general risk-averse sentiment. Bitcoin (BTC) and other crypto assets showed mixed reactions. BTC remained steady at $66,200, while Ethereum (ETH) increased by 1.1%, as traders moved towards these non-sovereign hedging assets amidst global uncertainty. Historical Similarities and Strategic Risks This isn't the first time regional tensions have unsettled the market. In January 2020, the assassination of Iranian General Qassem Soleimani by the U.S. caused Brent crude prices to spike by 4%. Similarly, in 2019, attacks on Saudi oil infrastructure temporarily reduced global oil production by 5%, leading to a sharp increase in prices. Experts warn that a full-scale conflict could create global inflationary pressures, complicating monetary policy paths. "Energy shocks from regional conflicts have historically driven central banks towards tightening," said Rystad Energy analyst Louise Dixon. Diplomatic Repercussions Trump's hawkish remarks could strain efforts by the Biden administration and EU countries to de-escalate tensions through diplomatic follow-up actions. While NATO has yet to issue an official response, the EU Commission is assessing an energy emergency plan that includes diversifying LNG (liquefied natural gas) supplies and utilizing strategic reserves. With reports of the Iranian Revolutionary Guard on heightened alert and emergency meetings of the Israeli cabinet, market volatility is expected to persist. This situation underscores the interconnectedness of geopolitical issues, energy security, and the stability of financial markets.