US stock markets showed tentative moves on Monday, with the S&P 500 inching higher while the Dow Jones Industrial Average slipped, as oil prices remained volatile ahead of President Donald Trump’s deadline on Iran, AP reported.The S&P 500 rose 0.1% in early trading, coming off its first weekly gain in six weeks. The Dow Jones Industrial Average fell 107 points, while the Nasdaq Composite advanced 0.4%.Oil prices fluctuated between gains and losses amid uncertainty over the Iran conflict and its impact on global energy supplies.Trading remained subdued as geopolitical tensions escalated, with Israel and the United States carrying out strikes in Iran that reportedly killed 25 people ahead of Trump’s deadline for Tehran to reopen the Strait of Hormuz.Futures markets reflected cautious sentiment, with S&P 500 futures up 0.1%, Dow futures down 0.2% and Nasdaq futures gaining 0.3%.Iran’s South Pars natural gas field was among the targets hit, while Tehran responded with missile attacks on Israel and Gulf Arab neighbours. Mediators from Egypt, Pakistan and Turkey have proposed a 45-day ceasefire and reopening of the Strait of Hormuz, though both Iran and the US are yet to respond.
Trump, whose deadline expires Monday night Washington time, warned that if no agreement is reached, the US would target Iran’s power plants and infrastructure.“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran,” he said in a social media post, adding that failure to reopen the strait would leave Iran “living in Hell.”Despite the escalation, oil prices eased slightly. Benchmark US crude fell $1.40 to $110.14 per barrel, while Brent crude declined 45 cents to $108.58 per barrel.
Prices, however, remain sharply elevated, with US crude up over 60% and Brent up nearly 50% since the conflict began five weeks ago.Global markets showed mixed trends. Japan’s Nikkei 225 rose 0.6% and South Korea’s Kospi gained 1.4%, while markets in Australia, Hong Kong, Shanghai and parts of Europe remained closed due to holidays.The US relies on the Persian Gulf for only a fraction of its oil imports, but global pricing dynamics mean disruptions in the Strait of Hormuz affect markets worldwide.
Countries like Japan remain heavily dependent on the route, prompting efforts to secure alternative supply lines.Japan has begun releasing reserves and exploring alternate routes, while South Korea plans to deploy at least five ships to Saudi Arabia to establish new oil transport corridors.“As we kick off the first full trading week of April, the word uncertainty is paramount. Last year it was centered on the impact of ‘Liberation Day’ tariffs, this year it’s uncertainty surrounding the ongoing Iranian War,” said Jay Woods, analyst at Freedom Capital Markets in New York.
