SINGAPORE — On Thursday (April 2), stocks experienced a decline, the dollar strengthened, and oil prices increased following US President Donald Trump's announcement that Washington's "core strategic objectives" in the Iran conflict are close to completion. However, he did not provide a definitive timeline for the conclusion of the conflict.

The potential resolution of the month-long US-Israeli war with Iran had previously boosted global stock markets and caused the dollar to retreat from its recent highs during the last two trading sessions, following a tumultuous March where surging oil prices created turmoil for risk assets.

In his prime-time address, Trump stated that the US would strike Iran "extremely hard" over the next two to three weeks, threatening to push the nation back to the "Stone Ages."

This announcement caused stocks to decline, with US stock futures dropping by 0.67 percent and European futures falling by 0.1 percent.

The MSCI's broadest index of Asia-Pacific shares outside Japan fell by 0.75 percent, while Japan's Nikkei index also turned downwards, trading 0.79 percent lower amid volatile market conditions.

Analysts and investors are closely monitoring the situation regarding the Strait of Hormuz, a vital fuel shipment route, and are eager to know when it will reopen to alleviate the supply bottleneck that has adversely affected Asian economies.

Iran has engaged in repeated military actions against Gulf nations, some of which host US military bases, and is leveraging control over the Strait of Hormuz, which accounts for one-fifth of global oil and liquefied natural gas shipments.

In March, rising energy prices heightened concerns about global inflation, coupled with fears of slowing economic growth, which have dampened market sentiment.

During this period of uncertainty, the US dollar has emerged as the preferred safe haven for investors, strengthening against most currencies following Trump's speech.

The euro declined by 0.25 percent, trading at US$1.156 (S$1.49), while the front-month Brent crude contract for June surged over three percent to reach US$104.75 per barrel.