U.S. Stocks Hold Gains as Trump Reaffirms Iran Deadline
U.S. equities remained slightly higher on Monday after Donald Trump confirmed that discussions with Iran are ongoing while reiterating a Tuesday deadline for reopening the Strait of Hormuz.
Speaking at a White House press conference, Trump warned that Iran “could be taken out” if no agreement is reached. Earlier, Iranian state media reported that Tehran had rejected a proposed ceasefire to end the conflict.
Major Indexes Post Modest Gains
As of 14:22 ET (18:22 GMT), key U.S. indices were trading in positive territory:
- S&P 500 rose 0.3% to 6,604.24
- NASDAQ Composite gained 0.5% to 21,977.42
- Dow Jones Industrial Average added 0.35% to 46,619.24
Wall Street Recovers After Volatile Week
Markets returned from the long Good Friday weekend following a highly volatile period. The three major U.S. indices recorded their strongest weekly performance since November, driven by an early-week rally fueled by hopes of de-escalation in the Middle East.
However, optimism faded later in the week after Trump signaled potential military action against Iran, dampening sentiment.
Ceasefire Talks Remain Uncertain
Attention remains focused on a proposed ceasefire framework reportedly presented to both the U.S. and Iran. The plan, facilitated by Pakistan, includes an immediate ceasefire followed by negotiations aimed at reaching a broader agreement within 15 to 20 days.
Despite this, Iran has rejected the proposal, instead calling for a permanent resolution to the conflict. Reports also suggest discussions around a possible 45-day ceasefire as part of a longer-term deal.
Trump acknowledged that Iran had made a “significant” proposal but described it as insufficient, maintaining pressure for a stronger agreement.
Strait of Hormuz Remains a Critical Flashpoint
Trump’s deadline centers on reopening the Strait of Hormuz, a key global shipping route that handles roughly 20% of the world’s oil and gas flows.
The effective closure of the strait since the escalation of conflict in late February has caused major disruptions to global energy supply, pushing oil prices sharply higher.
Oil Surge Fuels Inflation Concerns
Rising energy prices continue to impact global markets. Brent crude was last up 1.2% to $110.28 per barrel, while WTI crude oil rose 1.3% to $112.98.
Elevated oil prices are increasing inflationary pressures worldwide and may force central banks to maintain or even raise interest rates, potentially weighing on economic growth.
Ongoing Conflict Adds Market Uncertainty
Military activity in the region continues, with reports of fresh strikes targeting Iranian infrastructure and key personnel. The escalation has increased geopolitical uncertainty and remains a major driver of market volatility.
Strong Jobs Data Shifts Focus to Inflation
Investors are also digesting recent U.S. labor market data. The latest nonfarm payrolls report showed 178,000 jobs added in March, well above expectations, highlighting resilience in the economy.
However, revisions to previous months’ data point to ongoing volatility in the labor market, reinforcing uncertainty about the broader economic outlook.
Inflation Data in Focus This Week
Attention now turns to upcoming inflation data, with the March Consumer Price Index (CPI) report due later this week. The release is expected to provide insight into how rising energy prices are affecting inflation trends.
Markets will closely watch the data for signals on future monetary policy decisions by the Federal Reserve.
