On Sunday, U.S. stock futures slipped while oil prices surged as geopolitical tensions escalated after President Donald Trump issued a deadline to Iran to reopen the critical Strait of Hormuz.
Markets Slide As Oil Rally Signals Supply Shock
Dow futures fell 164 points, or 0.35%, to 46,568.00.
S&P 500 futures declined 15.25 points, or 0.23%, to 6,607.00, while Nasdaq 100 futures dropped 23.50 points, or 0.10%, to 24,194.50 as of 8:49 p.m. EDT.
In commodities, WTI crude futures climbed 0.75% to $112.38 per barrel, while Brent crude rose 1.72% to $110.90 per barrel.
RBOB gasoline futures edged down 0.01% to $3.2878 per gallon and ULSD heating oil futures advanced 2.77% to $4.4818 per gallon.
Natural gas futures rose 1.54% to $2.843 per MMBtu.
Meanwhile, the U.S. dollar index was at 100.238, up 0.05%.
Asian markets were higher, with Japan’s Nikkei 225 gaining 0.73% to 53,509.50, while South Korea’s KOSPI rose 1.01% to 5,431.73.
Trump Issues Deadline Over Strait Of Hormuz
Trump warned Iran to reopen the Strait of Hormuz by Tuesday evening or face potential U.S. military action targeting key infrastructure.
In a Truth Social post, Trump said Iran would be “living in Hell” if it failed to comply and threatened strikes on power plants and bridges.
He later added, “Tuesday, 8:00 p.m. Eastern Time!” without further details.
Earlier on Saturday, Trump gave a 48-hour ultimatum to Iran, warning that failure to reopen the Strait of Hormuz could prompt U.S. strikes targeting the country’s power infrastructure
The Strait of Hormuz is a vital global oil chokepoint, historically accounting for roughly 20% of worldwide crude shipments. Its disruption has triggered what analysts describe as one of the largest supply shocks in modern energy markets.
Tehran Pushes Back, Signals Openness To Talks
Iranian Foreign Minister Abbas Araghchi pushed back against media reports, saying Tehran has not rejected diplomacy.
“We are deeply grateful to Pakistan for its efforts and have never refused to go to Islamabad,” he said, highlighting the need for “a conclusive and lasting end to the illegal war.”
In a separate post, Araghchi also accused the U.S. and its allies of escalating the conflict and said, “Attacks on our petrochemicals also convey real objectives.”
Conflict Escalates As Ceasefire Efforts Stall
Tensions intensified after Iran reportedly shot down a U.S. F-15E fighter jet, prompting a high-risk rescue operation.
Meanwhile, ceasefire efforts led by regional mediators have reportedly stalled, with both sides holding firm on their positions.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: VADZIM SHUBICH on Shutterstock.com
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