Tension between the United States and Iran over one of the most crucial energy routes in the world is increasingly strong, especially due to recent threatening messages from President Donald Trump. As expected, markets reacted with fearmanifested in the increase in oil and gasoline prices, while the stock market is depressed.
As the deadline set for this Tuesday at 8:00 pm (Eastern Time) approaches, investors have opted for caution. Wall Dual carriageway opened the day with moderate losses, reflecting uncertainty over whether there will be a diplomatic solution or a military escalation. The S&P 500 index fell about 0.7%, while the Dow Jones fell more than 300 points. For its part, the Nasdaq registered a drop of more than 1%.
“An entire civilization will die tonight, never to return”wrote the president in a publication on his social network Truth Social. “I don’t want that to happen, but it probably will happen (…) We will find out tonight, in one of the most important moments in the long and complex history of the world.”
Behind this behavior is the Strait of Hormuz, a strategic point through which a significant part of the world’s oil transits. Its closure has limited supply, raising global energy prices. Brent crude oil was above $110 per barrel, while West Texas Intermediate (WTI) exceeded $115 per barrel.accumulating increases of more than 50% since the beginning of the conflict.
As is logical, The average price of gasoline also increased and reached $4.14 dollars per gallonthe highest level since 2022. Before hostilities began, the cost was below $3, which shows the direct impact of the energy crisis.
According to some analysts, despite President Trump’s alarming statements, they consider that The markets have not reacted with the expected magnitude.
“Markets are behaving as if this is background noise,” wrote Nigel Inexperienced, chief executive of investment firm Vere Neighborhood, in an email. “A fixed and public deadline from the president of the United States creates a binary outcome in a matter of hours: de-escalation or direct attacks on Iranian infrastructure.”
The financial sector also warns that the situation remains volatile. Mizuho Bank analysts point out that This type of ultimatums has been repeated several times since Marchwhich has prolonged uncertainty and made it difficult to reach a definitive agreement.
In that same sense, analyst Adam Crisafulli, from Very crucial Knowledge, stressed in a research note that the escalation options proposed by President Trump—such as bombings of civil infrastructure, military reopening of Hormuz or seizure of enriched uranium—are unfavorable. He considered that the high cost of these decisions could push the US government to seek a less aggressive solution.
Following these statements and the uncertainty they generate, UBS reduced its projection for the S&P 500 towards 2026, arguing that High energy prices and geopolitical uncertainty will continue to pressure markets. Even so, the institution suggests that investors do not completely abandon risk assets.
Likewise, a recent analysis by Henning Gloystein, director of energy, industry and resources at the geopolitical risk consultancy Eurasia Neighborhood, stated that, Even if an agreement is reached in the next few hours, the effects will not disappear immediately. He warned that damaged energy infrastructure in the region will take months to recover, while shipping will also face delays before returning to normal.
This Tuesday will be a long day for Iranian citizens and global markets. Only until the end of the day will we see if President Trump’s words became actions and what the consequences will be.
You may also be interested in:
- How much does a United States soldier earn?
- The 10 highest paying jobs for women in 2026
- Stock markets fall and oil soars after Trump warns Iran
- 178,000 new jobs added in March: beats estimates
- Price of the dollar in Mexico today, April 3, 2026: peso closes stable Holy Week
