US stocks fell Tuesday morning and oil prices rose as President Trump’s 8 p.m. ET deadline for Iran to reopen the Strait of Hormuz quickly neared — and investors feared a deal would not be reached in time.
The Dow Jones Industrial Average slumped 320 points, or 0.7%, by approximately 10:05 a.m. ET, while the S&P 500 and Nasdaq dipped 0.8% and 1.2%, respectively.
Brent crude prices rose 0.4% to $110.19 a barrel. West Texas Intermediate crude jumped even higher — rising 2.9% to $115.71. National average gasoline prices climbed to $4.14 a gallon, according to AAA.
Trump reaffirmed his quickly approaching deadline for Iran to reach a deal to reopen the strait — a vital maritime route for 20% of the world’s oil — or face intense bombardment of its bridges and power plants.
In social media posts Tuesday morning, the president signaled that a deal with Iran in time to avert the bombings seemed unlikely.
“A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will,” Trump wrote in a Truth Social post.
“However, now that we have Complete and Total Regime Change, where different, smarter, and less radicalized minds prevail, maybe something revolutionarily wonderful can happen, WHO KNOWS?” Trump added.
Tensions ramped up following reports that the US overnight struck Iran’s critical energy hub of Kharg Island — roughly one-third the size of Manhattan, but in control of 90% of Iranian crude oil exports.
The island is key to Iran’s economy, and the nation has repeatedly stated that any attacks on the energy hub would be viewed as crossing a line in the sand.
When asked about the reported Kharg Island strikes early Tuesday, Trump told The Post he “can’t comment on that.”
Trump’s latest threat to the Islamic Republic comes after he warned the nation Sunday to “Open the F—in’ Strait, you crazy b—–ds, or you’ll be living in Hell.”
If Iran does not reach a deal by the 8 p.m. deadline, Trump threatened to blow up the country’s power plants and bridges — making it “Power Plant Day, and Bridger Day, all wrapped up in one.”
Critics have warned that strikes against bridges and energy infrastructure would amount to war crimes.
“No, not at all — no, no I’m not. I hope I don’t have to do it,” Trump told reporters during a press conference Monday when asked whether such attacks constituted war crimes.
There have already been attacks on key energy infrastructure in the Middle East since the US and Israel launched strikes on Iran on Feb. 28, including damage to facilities in Iran, Qatar and Saudi Arabia.
Analysts have warned that such attacks could keep oil prices elevated even if the war ends soon, since it will take time and money to repair damages.
Economists have cautioned that energy supply shocks tend to ripple across consumer prices, potentially reheating inflation and keeping interest rates higher.
