US stock futures traded lower in Tuesday’s session as investors continued to track developments in West Asia amid US President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz and agree to a ceasefire, or face military retaliation if Tehran fails to meet the Tuesday deadline.
Futures of the three key indices—the Dow Jones Industrial Average, the S&P 500, and the Nasdaq—were down in the range of 0.4%–0.6%.
In response to Trump’s latest threats, Iran said it would not agree to a 45-day ceasefire proposal and reiterated that it seeks a permanent end to the war. Tehran also warned of potential retaliation against infrastructure belonging to US allies in the Gulf.
A senior Iranian source told Reuters that Tehran had rejected a proposal conveyed by intermediaries for a temporary ceasefire. Talks on a lasting peace could begin only after the US and Israel end their strikes, provide assurances they will not resume them, and offer compensation for damage.
As the deadline approached, global markets remained largely cautious, with investors hesitant to bet on whether Trump would follow through on his threats or pull back, as he has done in the past.
At a press conference on Monday, Trump doubled down, saying, “The entire country can be taken out in one night, and that night might be tomorrow night. Every bridge in Iran will be decimated… Every power plant in Iran will be out of business, burning, exploding, and never to be used again.”
Trump has given Iran until 8 PM in Washington (midnight GMT and 3:30 AM in Tehran) to end its blockade of Gulf oil, warning that he would otherwise destroy key infrastructure in Iran within hours.
Trump had earlier extended the deadline from Monday to Tuesday—one of several such delays—and warned that without a deal, “hell will rain down on them”.
His initial deadline was set for 23 March, but it shifted multiple times in the following weeks as he alternated between threats, extensions, and optimistic statements on negotiations—sometimes within the same announcement.
Crude oil prices rebound amid escalating geopolitical tensions
Brent crude oil prices rebounded, trading 1% higher at $110 a barrel, while WTI crude futures jumped 2.53% to $115.25 a barrel. On Thursday, Brent prices had surged over 6% after Trump said military operations would be intensified over the next two to three weeks.
Crude oil has remained the focal point of the crisis, as the closure of the Strait of Hormuz by Iran and continued attacks on energy infrastructure by the US, Israel, and Iran have triggered force majeure declarations by several oil-producing nations in the Middle East, raising concerns that a prolonged conflict could deepen supply shortages.
Since war erupted in the Middle East on 28 February with the US and Israel’s joint attacks on Iran, the passage of oil tankers through the Strait of Hormuz has all but stopped, cutting off a vital passageway where roughly one-fifth of the world’s oil sails through on a typical day.
Iran has effectively stopped tankers from using the Strait of Hormuz, the shipping lane between the Persian Gulf and the Gulf of Oman — the gateway to the Indian Ocean — through which nearly 20% of the world’s oil is transported.
(With inputs from Reuters and AP)
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