The S&P 500 (SPX) is trading lower on Tuesday ahead of President Trump’s 8 p.m. Eastern Time deadline for Iran to reopen the Strait of Hormuz.
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Trade QQQ with leverageFollowing Trump’s warning that Iran’s “whole civilization will die tonight,” Iran completely cut off direct communications with the U.S., according to the Wall Street Journal. However, mediators continue to negotiate a ceasefire deal between the two sides.
Oil Jumps 3% as Hormuz Remains Closed
On Monday, Iran rejected a ceasefire proposal drafted by mediators and instead issued its own set of terms, which include the removal of all sanctions, a guarantee against future attacks, and a $2 million fee for each ship crossing through Hormuz to pay for war damages.
Oil prices are on the rise as traders bet on continued disruptions to Hormuz. On the prediction platform Polymarket, traders assign a 13% chance that traffic through the passageway will return to normal by the end of April and 42% by the end of May.