Trump deadline drives oil price swing, market wobble
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- Trump issued a deadline for Iran to reopen the Strait of Hormuz, threatening devastating attacks if it fails.
- Oil prices jumped early after US‑Israeli strikes on Iran’s Kharg island, then moderated with West Texas Intermediate up modestly and Brent slipping slightly.
- US stock indices spent most of the day in negative territory but finished narrowly positive after a late‑session rally, while the S&P 500 briefly turned red then rallied.
- Analyst Patrick O'Hare described the market as being in “purgatory” but still believing the worst‑case scenario will be avoided.
- Iran has blocked the Strait of Hormuz since Feb 28, affecting about one‑fifth of global oil flows, and its Revolutionary Guard warned it would destroy energy installations if US attacks cross its red lines.
- European markets (Paris, London, Frankfurt) closed about 1% lower as Middle‑East tension persisted.
- White House confirmed receipt of a Pakistani proposal to extend Trump’s deadline, which helped moderate market anxiety.
Why it matters: Oil traders and oil‑dependent economies confront higher costs as the deadline fuels price spikes, while investors grapple with heightened risk and potential short‑term gains from market swings; governments are compelled to roll out economic support to curb inflationary pressure.
