Donald Trump accused of another 'TACO' after making huge threats against Iran

Predicting global energy markets has been subject to turbulence in recent days, as investors try to gauge whether Donald Trump will follow through on his tough stance toward Iran or shift course once again.

Oil prices reflected that uncertainty. Brent crude initially jumped nearly 4% earlier in the day to around $104 per barrel, but later slipped back to roughly $102. Before Trump announced a five-day pause on potential strikes against Iranian power plants, while waiting for what he described as “productive” talks, prices had been above $110.

The uncertainty has revived a nickname some traders use — TACO, an abbreviation for “Trump Always Chickens Out.”

The term reflects a belief among some investors that Trump often makes bold policy announcements before backing down, especially if there is strong pushback. This perception has even led to what’s known as a “TACO trade,” where traders attempt to profit from market swings triggered by his statements.

Trump's peace claims have raised further questions over TACO

The latest tension comes after Trump claimed that “strong talks” had taken place between his administration and Iran. However, officials in Tehran quickly rejected that version of events.

These claims come just days after the U.S. leader claimed that he would "obliterate" Iranian power plants if they did not reopen the Strait of Hormuz.

Mohammad Baqer Qalibaf, Speaker of the Parliament of Iran, dismissed the claim, saying: “No negotiations have been held with the US, and fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped.”

With the Iranians contradicting Trump’s claims, it has added further uncertainty, with global energy market investors second-guessing what will happen next. Reports from Iranian media have also contradicted Trump’s statements, further fuelling volatility.

Financial analyst Ipek Ozkardeskaya said: “The idea that Trump can act alone and shape outcomes doesn't hold if the counterparty refuses to engage.” She added: “Any resolution in the Middle East is also contingent on Iran's willingness to de-escalate.”

The “TACO” label has reportedly irritated Trump in the past, with the president previously pushing back strongly when questioned about it.

Qatar pushes for de-escalation

Meanwhile, calls for a diplomatic resolution are growing. Officials from Qatar have urged de-escalation, warning that extreme outcomes in the region are not viable. A spokesperson said the “total annihilation” of Iran is not an option and stressed the need for countries in the region to find ways to coexist.

They also warned that the Gulf’s security framework has been destabilised by the conflict and needs to be reassessed. While Qatar has not reported any recent incidents requiring public alerts, officials noted that this does not necessarily mean the country has not been targeted.

Qatar has previously faced attacks as Iran responded to U.S. and Israeli strikes across the region, highlighting the broader risks of escalation.

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