Investors' hopes for a swift end to the Iran conflict, fueled by President Trump's initial promises, are crumbling as his escalating rhetoric creates market volatility. After a brief rally where US stocks surged nearly 3% and oil prices dipped below $100, Trump's subsequent White House address threatening to 'bring Iran back to the Stone Ages' triggered a sharp reversal. Oil prices rebounded sharply, and stocks fell, demonstrating the market's fragility to Trump's statements.

This pattern of hope followed by disappointment is eroding investor confidence, leading to 'headline fatigue' and a loss of trust in Trump's ability to stabilize markets. The constant flip-flopping has crushed his previously reliable 'magic' touch for boosting stocks.