Markets on edge as Trump threatens strikes on Iranian infrastructure
Oil prices rose while stocks were mixed on Monday after U.S. President Donald Trump warned of “hell” for Iran unless it reopens the Strait of Hormuz by his self-imposed deadline, but a report of a push for a ceasefire appeared to ease some nerves.
Trump’s repeated threats to destroy civilian infrastructure including power plants and bridges if the vital waterway is not open by Tuesday have put traders on edge for reciprocal attacks by Iran on targets in the Gulf states.
Investors, however, took some confidence after Axios reported that the U.S., Iran and a group of regional mediators are discussing the terms for a potential 45-day ceasefire that could lead to a permanent end to the war, citing four U.S., and regional sources with knowledge of the talks.
Brent crude futures LCOcv1opened higher before paring gains, rising 1.2% to $110.29 a barrel on the potential supply disruption.
On Sunday, markets looked through an agreement by members of the OPEC+ group to raise its output quotas by 206,000 barrels per day for May, as several major oil producers behind the Strait of Hormuz have sustained damage to oil production facilities and transport infrastructure since the war started.
