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Why Nobody Is Talking About This
Trump's five-day ceasefire statement is not random.
There are two major reasons behind it, and the second reason will shock you.
The first reason is to calm the markets.
Since the US-Iran war began, US stocks have been selling off significantly.
On top of that, US 10-year Treasury yields are rising, and the probability of a rate cut from the Federal Reserve has turned into a rate hike.
As we all know, Trump cares about stock and bond markets more than anything else.
Today's statement is simply to lower bond yields and bring some relief to the stock market.
Additionally, the five-day deadline will end on Friday after US market close, so the market can bounce back before then.
Now, back to the second reason.
A few days ago, reports indicated that the US Navy's Amphibious Assault Ship "USS Tripoli" was moving toward the Middle East carrying 2,200 Marines.
This ship needs 3-5 more days to reach the Strait of Hormuz.
Do you know what the purpose of this is?
To ensure the safety of the Strait of Hormuz and allow tanker passage.
Since the war began, everyone knows this strait is Iran's most powerful weapon.
The US is trying to control it, and this takes time.
By setting a five-day deadline, Trump not only brought relief to the markets but also bought enough time for US ships to reach the strait.
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