Trump says working in a new, strong way

Summary

President Trump stated he is acting in a ‘different, powerful way’Zhitong. This follows a series of recent actions and statements, including considering ‘powerful options’ against Iran involving military posturing and harsh warnings about its nuclear program. This approach is seen as a negotiation tactic of using military threats to force concessions at a low cost. Other recent activities include announcing a $5 billion reconstruction pledge for GazaReuters, preemptively commenting on weak GDP dataSina Finance, and endorsing a major media acquisition to combat ‘Fake News’businessinsider.

Impact Analysis

This is classic Trump playbook, but the stakes are higher. The “new, powerful way” is just rhetoric, but the actions behind it, especially on Iran, are very realZhitong. He’s combining extreme threats—like wiping them “from the face of the Earth”—with actual military deployments like carrier strike groups. The consensus view is that this is just a negotiation tactic to force concessions without a real war. I think the market is underpricing the risk of a miscalculation. This isn’t just talk; it’s a deliberate strategy of brinksmanship that creates tangible volatility.

Bottom line: this escalates Middle East tension significantly. The direct trade is to be long energy and defense. The geopolitical risk premium on oil should be expanding with every threat and naval movement. We should increase exposure to major defense contractors who benefit from this level of military posturing. This is a clear signal that volatility is his primary policy tool.