US Stocks, Oil Prices Waver Ahead of Trump Iran Deadline/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks and oil prices fluctuated ahead of President Trump’s Iran deadline. Investors weighed ceasefire talks, rising oil prices, and economic data. Energy costs and geopolitical tensions continue shaping market uncertainty.
US Stocks Iran Deadline + Quick Looks
- Stocks move cautiously ahead of Trump deadline
- Oil prices swing amid Iran ceasefire negotiations
- S&P 500 edges slightly higher Monday
- Gas prices surge above $4 nationwide
- Big Tech stocks show mixed performance
- Treasury yields remain elevated
- Services sector expands but inflation pressures rise
- Global markets mixed amid holiday closures
Deep Look: US Stocks, Oil Prices Waver Ahead of Trump Iran Deadline
U.S. financial markets showed cautious movement Monday as investors reacted to geopolitical tensions surrounding Iran and a looming deadline set by President Donald Trump to potentially strike Iranian power plants.
Stocks fluctuated in early trading, while oil prices swung between gains and losses as mediators worked to negotiate a ceasefire agreement. The uncertainty surrounding the Middle East conflict and its potential impact on global energy supplies continues to weigh heavily on investors.
The S&P 500 edged up 0.1% in morning trading, marking tentative gains after the index recorded its first weekly increase in six weeks. Meanwhile, the Dow Jones Industrial Average slipped by 46 points, or 0.1%, while the Nasdaq composite rose 0.3%.
Oil prices continued to flip-flop throughout the session, reflecting uncertainty about the duration of the conflict and its effects on global oil shipments. Fighting persisted over the weekend, including an Israeli strike targeting an Iranian petrochemical facility, adding to investor concerns.
President Trump has warned Iran that the United States could target power plants and infrastructure if Tehran does not reopen the Strait of Hormuz to global shipping. The waterway normally handles roughly one-fifth of the world’s oil supply, making it one of the most critical energy routes globally.
Trump reinforced his warning over the weekend, stating on social media that “Tuesday will be Power Plant Day, and Bridge Day” in Iran, signaling potential military action if negotiations fail.
Oil Prices Surge Amid Tensions
Energy markets reacted quickly to the heightened geopolitical risk. U.S. benchmark crude rose 0.9% to $112.53 per barrel after briefly declining earlier in the session. Brent crude, the international benchmark, climbed to $109.11 per barrel.
Both remain significantly higher than pre-conflict levels, when Brent crude hovered around $70 per barrel.
Rising oil prices have translated into higher gasoline costs for consumers. The national average price for regular gasoline climbed to nearly $4.12 per gallon, according to AAA. Just days before the war began in late February, gas prices were below $3 per gallon.
Countries heavily dependent on Middle Eastern oil have experienced even greater economic strain. The conflict has disrupted shipments from the Persian Gulf, with limited traffic moving through the Strait of Hormuz.
Economic Data Offers Mixed Signals
Investors also evaluated fresh economic data suggesting resilience in the U.S. economy.
A report released Monday showed that businesses in the U.S. services sector — including finance and transportation — expanded for a 21st consecutive month in March. However, growth slowed slightly compared to expectations, and inflation pressures increased.
A measure of prices paid by businesses rose to its highest level since 2022, raising concerns that inflation could remain stubbornly high.
Friday’s jobs report provided more encouraging news. U.S. employers added more workers than expected last month, and the unemployment rate improved unexpectedly.
These indicators suggest the economy remains resilient despite rising energy costs and geopolitical uncertainty.
Treasury Yields Hold Steady
In the bond market, Treasury yields remained relatively stable. The yield on the 10-year Treasury note held at 4.35%, unchanged from Friday. However, yields remain significantly higher than pre-war levels of around 3.97%.
Higher Treasury yields typically translate into increased borrowing costs for consumers and businesses. Mortgage rates and other loan costs have climbed, potentially slowing economic growth.
Big Tech Stocks Show Mixed Performance
Major technology stocks delivered mixed results, contributing to the market’s cautious tone.
- Apple rose 1.2%
- Amazon gained 1%
- Microsoft fell 0.4%
- Nvidia declined 0.8%
Because these companies carry significant weight in major indexes, their mixed performance helped keep overall market movements limited.
The majority of stocks within the S&P 500 declined, highlighting underlying market caution despite modest gains in headline indexes.
Global Markets Mixed
International markets also reflected uncertainty.
Japan’s Nikkei 225 rose 0.5%, while South Korea’s Kospi jumped 1.4%. Many markets in Europe and Asia remained closed due to holidays, limiting broader global trading activity.
Investors worldwide are closely monitoring developments in the Middle East, particularly the Strait of Hormuz, which plays a crucial role in global energy supply chains.
With Trump’s deadline approaching and diplomatic negotiations ongoing, markets remain highly sensitive to developments that could either escalate tensions or lead to a ceasefire.
The coming days are expected to play a decisive role in determining both geopolitical stability and the direction of global financial markets.
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