In his national address on Wednesday, President Trump announced that the United States plans to take decisive action against Iran, promising to strike “extremely hard” over the upcoming weeks.

“We’re planning to aggressively target Iran over the next two to three weeks,” Trump declared. “Our actions aim to push them back to a primitive state, which is where they belong.”

In response, Iran’s Foreign Ministry released a statement on Thursday asserting, “The Iranian nation is unwavering and determined to defend itself against this aggression. We have no other option but to retaliate with strength.”

The announcement of the operation, dubbed “Epic Fury” by Washington, immediately impacted financial markets, affecting Asian stocks, U.S. Treasuries, and oil prices.

Shortly after his 19-minute speech, Asian markets reversed earlier gains from Thursday’s session, as benchmarks in Australia, Japan and South Korea fell. South Korea’s Kospi plunged 5.5%, leading losses in the region.

The Hong Kong and mainland Chinese markets, which opened their sessions shortly after his speech, started the day in negative territory.

Stocks listed in Europe also began their trading day firmly in negative territory, with the pan-European Stoxx 600 index shedding more than 1%. Regional banking, mining and technology stocks were particularly hard hit, with Germany’s DAX leading losses among major European exchanges.

Across the Atlantic, U.S. stock futures were down over 1% for all three major averages after trading flat earlier in the session.

Jitters about the trajectory of the war also rippled through bond markets, with government borrowing costs surging in countries across the globe. By 3:45 a.m. ET, yields on government bonds issued by the U.S., the U.K., Germany, France, Japan, Italy and Canada were rising across the curve, signaling a broad sell-off in developed-market debt markets.

Bond prices and yields move in opposite directions.

The yield on the benchmark U.S. 10-year Treasury note climbed 5 basis points to 4.368%, while Japan’s benchmark 10-year bond added 8 basis points to trade at 2.384%.

In currencies, the U.S. dollar index rose 0.5% to 100.157, reversing earlier losses.

The Japanese yen weakened 0.5% to 159.60 against the greenback, while the South Korean won fell 0.6% to 1,521.80. Both currencies had strengthened earlier in the session.

The dollar also strengthened against other major currencies, with the euro trading 0.2% lower against the greenback at 1.153, while the British pound fell 0.7% to 1.32 against the U.S. dollar.

Spot gold prices slipped 2.3% to $4,586.81 per ounce, paring deeper losses seen earlier on. Spot silver was 4.8% lower at $71.52 an ounce.

Oil prices saw the largest swings after Trump’s speech, with Brent crude futures jumping 6.7% to $107.92 a barrel while U.S. West Texas Intermediate rose 6.2% to $106.39.

Despite Trump’s claim that the U.S. has almost met all its objectives, analysts said his threat to hit Iran “extremely hard” could still send oil prices higher.

“Trump is declaring mission almost accomplished, but highlighting further escalation in the next few weeks, which increases the risk of more extensive damage to regional energy infrastructure both in Iran but throughout the Gulf,” Rachel Ziemba, founder of Ziemba Insights, told CNBC’s “The China Connection.”

Early Wednesday stateside, Trump claimed that Iran’s “New Regime President” had asked the U.S. for a ceasefire, a claim that Tehran has denied.

Trump added that the U.S. will “consider” the request only once the Strait of Hormuz is “open, free, and clear,” he said on Truth Social, fueling expectations that the war could drag on longer.

“Remember — the longer this war lasts, the longer the energy disruption from the [Strait of Hormuz] continues and the greater the risk of elevated energy prices,” said Chetan Seth, APAC Equity Strategist at Nomura. “It’s not over until it’s over.”

Seth added that risk markets such as equities are “not surprisingly disappointed,” especially after the excitement of the past couple of days.

Earlier this week, Trump had signaled that the U.S. could leave Iran, even without the Strait of Hormuz being opened, raising hopes for an end to the conflict. Markets then staged a rally over the past two days.

“Markets reacted negatively because, while Trump says it is nearly over, he is sending the third aircraft carrier and more troops to the region so it is hard to believe his words,” Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis told CNBC.

The U.S. earlier this week reportedly deployed the Nimitz-class aircraft carrier USS George H.W. Bush and its accompanying warships to the region. Washington had earlier stationed the carriers USS Abraham Lincoln and USS Gerald R. Ford to the region to support its operations against Iran.

“I think [a] further escalation is still the more likely scenario,” she added.