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US may ‘escalate to de-escalate’ attacks against Iran, says Scott Bessent

The United States may need to “escalate” its attacks against Iran to be able to wind down the war, US Treasury Secretary Scott Bessent said on Sunday, after US President Donald Trump gave seemingly contradictory trajectories for the US military campaign. Trump on Saturday threatened to “obliterate” Iranian energy plants if Tehran did not fully open the pivotal Strait of Hormuz, just a day after saying US objectives were “very close” and that he was considering “winding down” the war. Asked on...

Mar 22, 2026 &03422222202631; 16:42 UTC www.scmp.com Trending 4/5

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Negative for markets

Sentiment score: -60/100

High impact Immediate effect (hours)

WHAT THIS MEANS

The news of potential US escalation against Iran could disrupt oil supplies through the Strait of Hormuz, leading to higher energy prices and increased market volatility. This may negatively impact global stock indices and currencies, while boosting safe-haven assets like gold. Overall, it introduces short-term uncertainty that could weigh on investor sentiment amid existing geopolitical tensions.

AI CONFIDENCE

75% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

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Oil (WTI Crude)

CL=FCommodity

Expected to rise

Escalation risks could disrupt oil supplies from the Middle East, driving prices higher as markets react to potential supply shortages.

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Gold Futures

GC=FCommodity

Expected to rise

Geopolitical tensions often increase demand for gold as a safe-haven asset, though this may already be partially priced in due to ongoing conflicts.

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Euro / US Dollar

EURUSDCurrency

Expected to decline

A risk-off environment could strengthen the US dollar, putting downward pressure on EURUSD, especially if macro headwinds like inflation persist.

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S&P 500

^GSPCIndex

Expected to decline

Heightened uncertainty from US-Iran tensions may lead to a sell-off in US stocks, as investors shift to safer assets despite any promotional aspects in the headlines.

PRICE HISTORY

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⚡ SUGGESTED ACTION

Reduce exposure to risk assets like stocks and consider adding safe-haven positions in gold or US Treasuries to hedge against immediate volatility. Wait for clearer signals on oil market impacts before making aggressive trades, as the market may have already anticipated some escalation.

KEY SIGNALS

Geopolitical escalation riskPotential oil supply disruption

SECTORS INVOLVED

EnergyCommodities

Analysis generated on Mar 22, 2026 at 19:23 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by SCMP Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

US may ‘escalate to de-escalate’ attacks against Iran, says Scott Bessent

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