Trump Is Not Concerned About Worry Over Strikes Against Civilian Infrastructure

Summary

President Trump stated he is not worried about concerns related to striking civilian infrastructure.Zhitong This follows his previous threats to target Iran’s bridges and power plants amid the ongoing conflict, which have raised concerns about potential war crimes and have already contributed to rising oil prices.Yahoo Finance+ 2 While a temporary five-day pause on strikes against Iranian energy infrastructure in late March briefly eased market fears,benzinga_article analysts have suggested the market has not fully priced in the risk of an irreversible escalation.AnueSec

Impact Analysis

So Trump’s basically saying the gloves are off with Iran. He’s explicitly telling us he doesn’t care about the international outcry from hitting civilian targets.Zhitong Remember the market rallied on that flimsy five-day pause in strikes last month,benzinga_article+ 2 but this statement confirms that was just noise. The real signal is his consistent threat to hit their power plants and energy hubs.Yahoo Finance

This makes the scenario of a direct attack on Iran’s grid much more probable. The market seems to be underpricing this, just as some analysts noted last week.AnueSec An attack would almost certainly trigger Iranian retaliation against Gulf energy infrastructure, creating a massive oil supply shock. The bottom line is the risk premium on oil is too low. This is a clear signal to increase our long oil exposure and hedge our equity book for a major geopolitical flare-up. This isn’t a bluff anymore.