【Trump Performs "Art of Buck-Passing," Where Will Middle East Situation Head?】US President Trump claimed to be considering gradually reducing large-scale military operations against Iran in the Middle East, with objectives nearly achieved. Notably, this was released after market close. Over the past three weeks, each time he has immediately escalated the situation right after market close. This time, however, he seems to be de-escalating the situation, or at least hinting that he might withdraw. The strategy he's hinting at here is actually something many have speculated about—that he will directly announce "mission accomplished" and then leave the mess for others to clean up.

He said the Strait "needs to be guarded and patrolled by other countries that use the strait," which excludes US participation. He did indicate that the US would provide assistance if requested, but I believe this will come at a high cost. Additionally, he said this morning that ensuring strait security is easy for America, but now he's changed his tune to say "it's easy for them."

Setting aside political factors, this significantly reduces the likelihood of US ground invasion or prolonged warfare. It sounds like Trump intends to abandon the action and let the Iranian regime continue. Now we can only wait and see how Iran and Gulf states will respond. I have a hunch Iran will demand these countries close US military bases.

In any case, Europe, Japan, Canada, and Bahrain have issued statements expressing willingness to work together to ensure safe passage through the Strait of Hormuz.

(The above views are for reference only and do not constitute investment advice)