When under pressure on inflation, tariffs, immigration and even the Jeffrey Epstein case, the Trump administration has pointed to the success of the financial markets.
When under pressure on inflation, tariffs, immigration and even the Jeffrey Epstein case, the Trump administration has pointed to the success of the financial markets.
But Donald Trump's biggest move of his presidency, the war with Iran, has seen a sharp drop in shares globally.
And there's no end in sight for the market decline.
READ MORE: Trump's past comments on Iran come back to haunt him
"Yesterday was the markets' denial phase. Today is the no relief phase," Bank of New York's Bob Savage said.
"There is significant room for global market corrections to continue, as risk has been built up over the last three years of global growth."
The ASX 200 dropped sharply on opening this morning, the third straight day of substantial losses.
Former Goldman Sachs strategist Robin Brooks said that financial markets are the "ultimate constraint" for Trump.
"It was disorderly conditions in the Treasury market that got him to back down vis-à-vis China back in April 2025," he said.
"We're moving in that direction very fast."
Some stockbrokers are even hoping for another TACO moment from the president.
The unflattering term coined on Wall Street stands for "Trump Always Chickens Out".
Many investors have cashed in on the assumption that the president would reverse his unpopular decisions in the face of wide opposition.
The term first came into use after Trump delayed many of his Liberation Day tariffs.
READ MORE: Conservative commentators lash Donald Trump's decision to attack Iran
"There are a few areas where Donald Trump is sensitive to pushback," the US Studies Centre Director of Research Jared Mondschein told nine.com.au.
"As much as people say he likes to only go in one direction and go maximalist, he often comes to a more negotiated outcome or settlement."
And when it comes to Iran, Trump does not have the support he would have hoped for.
"He's also gotten pushback from Republicans on some matters, when he sees his GOP base is not with him," he said.
"He also has responded in the past to the financial markets not going well."
But predicting the president's next move is a "fool's errand", Mondschein said.
The ASX 200 is down 1.71 per cent and counting an hour after the markets opened.
Meanwhile, the price of oil continues to skyrocket as Iran threatens oil tankers in the Strait of Hormuz.
The Dow Jones had another bad day, as did the S&P 500 and the Nasdaq Composite.
READ MORE: Furious Republican senator threatens to bring Trump agenda to a halt
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