<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>When under pressure on </span><a href="https://www.9news.com.au/finance/rba-interest-rates-live-updates-february-2026-decision-latest-news-headlines/cec87747-a086-4fb9-aab2-29f5790794d1" rel="" target="" title="inflation"><span>inflation</span></a><span>, </span><a href="https://www.9news.com.au/world/us-supreme-court-rules-donald-trump-emergency-tariffs-are-illegal/1ca36da0-2e48-4135-80ae-ff1c3cd6820c?utm_source=facebook&amp;utm_medium=social&amp;utm_campaign=nine.com.au&amp;utm_content=feed&amp;utm_term=nine_digital" rel="" target="" title="tariffs"><span>tariffs</span></a><span>, </span><a href="https://www.9news.com.au/immigration" rel="" target="" title="immigration"><span>immigration</span></a><span> and even the </span><a href="https://www.9news.com.au/world/pam-bondi-jeffrey-epstein-victims-congressional-hearing-jamie-raskin-pramila-jayapal/74f21ec7-5c01-4c70-bc3c-0a31327ce022" rel="" target="" title="Jeffrey Epstein case"><span>Jeffrey Epstein case</span></a><span>, the Trump administration has pointed to the success of the financial markets.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But </span><a href="https://www.9news.com.au/donald-trump" rel="" target="" title="Donald Trump"><span>Donald Trump</span></a><span>'s biggest move of his presidency, </span><a href="https://www.9news.com.au/world/us-israel-attack-iran-live-updates-donald-trump-latest-world-news-headlines/94a5cc0c-0369-44b9-8765-70bb2633e2bd" rel="" target="" title="the war with Iran"><span>the war with Iran</span></a><span>, has seen a sharp drop in shares globally.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>And there's no end in sight for the market decline.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-attacks-iran-donald-trump-iran-latest-previous-comments-on-iran-war-barack-obama-jd-vance-kamala-harris/86dc4c3e-43fd-4ba4-ad86-ec1da170f16b"><strong><span>Trump's past comments on Iran come back to haunt him</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Yesterday was the markets' denial phase. Today is the no relief phase," Bank of New York's Bob Savage said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There is significant room for global market corrections to continue, as risk has been built up over the last three years of global growth."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The </span><a href="https://www.9news.com.au/world/us-israel-attack-iran-live-updates-donald-trump-latest-world-news-headlines/94a5cc0c-0369-44b9-8765-70bb2633e2bd#post=88b56b61-2120-46a7-a1a3-99ac2d7f8e3b" rel="" target="" title="ASX 200 dropped sharply"><span>ASX 200 dropped sharply</span></a><span> on opening this morning, the third straight day of substantial losses.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/world/donald-trump-taco-chickens-out-iran-war-latest-updates-financial-market-response/e31077c4-dd41-4664-9eeb-9bc76aa5febc" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Former Goldman Sachs strategist Robin Brooks said that financial markets are the "ultimate constraint" for Trump.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It was disorderly conditions in the Treasury market that got him to back down vis-à-vis China back in April 2025," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We're moving in that direction very fast."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Some stockbrokers are even hoping for </span><a href="https://www.9news.com.au/world/taco-donald-trump-always-chickens-out-greenland-retreat-back-down/7b017a28-6b64-4624-9ae6-c4f636559f67" rel="" target="" title="another TACO moment"><span>another TACO moment</span></a><span> from the president.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The unflattering term coined on Wall Street stands for </span><a href="https://www.9news.com.au/world/taco-donald-trump-always-chickens-out-greenland-retreat-back-down/7b017a28-6b64-4624-9ae6-c4f636559f67" rel="" target="" title='"Trump Always Chickens Out"'><span>"Trump Always Chickens Out"</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Many investors have cashed in on the assumption that the president would reverse his unpopular decisions in the face of wide opposition.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The term first came into use after Trump delayed many of his </span><a href="https://www.9news.com.au/world/donald-trump-tariffs-liberation-day-what-to-expect-explainer/b41a6136-de97-4aa2-ba7d-ac2c199f1c0f"><span>Liberation Day tariffs</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-attacks-iran-conservative-commentators-lash-donald-trumps-decision-to-attack-iran/ba98ba21-78ba-428b-bfa9-ad23844cba82"><strong><span>Conservative commentators lash Donald Trump's decision to attack Iran</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There are a few areas where Donald Trump is sensitive to pushback," the US Studies Centre Director of Research Jared Mondschein told </span><a href="http://nine.com.au" rel="" target="" title="nine.com.au"><span>nine.com.au</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"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."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>And when it comes to Iran, Trump does not have the support he would have hoped for.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"He's also gotten pushback from Republicans on some matters, when he sees his GOP base is not with him," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"He also has responded in the past to the financial markets not going well."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But predicting the president's next move is a "fool's errand", Mondschein said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The ASX 200 is down 1.71 per cent and counting an hour after the markets opened.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Meanwhile, the price of oil continues to skyrocket as Iran threatens oil tankers in the Strait of Hormuz.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Dow Jones had another bad day, as did the S&amp;P 500 and the Nasdaq Composite.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/donald-trump-thom-tillis-kristi-noem-ice-department-of-homeland-security-senate-usa/46925cce-c784-4f7b-bd3e-64d5f70a67a1"><strong><span>Furious Republican senator threatens 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