US stocks fell Thursday morning and oil prices jumped 4% as President Trump warned Iranian negotiators they “better get serious soon” amid conflicting reports over peace talks.
The Dow Jones Industrial Average slumped 250 points, or 0.5%, by approximately 9:35 a.m. ET, while S&P 500 and Nasdaq futures dropped 0.8% and 1.1%, respectively.
Brent crude futures – which saw some relief earlier this week, dropping below $100 a barrel – skyrocketed back up to $106.64. West Texas Intermediate crude jumped nearly 4% to $93.83 a barrel.
As Tehran maintains its blockade of the Strait of Hormuz, and the war in Iran shows no signs of stopping in its fourth week, investors are hoping for a short-lived conflict that will allow oil prices to normalize and relieve pressure on gasoline.
But attacks on critical Middle Eastern energy infrastructure could keep prices elevated even if the war ends soon, since damages will need to be repaired, and Trump signaled Thursday morning that tensions are high between the two regions.
“The Iranian negotiators are very different and ‘strange.’ They are ‘begging’ us to make a deal…and yet they publicly state that they are only ‘looking at our proposal,’” Trump wrote in a Truth Social post Thursday morning.
“They better get serious soon, before it is too late, because once that happens, there is NO TURNING BACK, and it won’t be pretty!”
Iranian leaders rejected a 15-point peace plan from the Trump administration, according to state media, which reported that officials in Tehran have no plans to hold talks with the US.
“Any sustainable market recovery will require meaningful progress toward a peace agreement and a reopening of the Strait of Hormuz,” Adam Turnquist, chief technical strategist for LPL Financial, said in a note Thursday.
Follow The Post’s latest coverage on the blocked Strait of Hormuz and its lasting effects
“With the S&P 500 approaching major support at its November lows, there is little room for further deterioration before correction territory comes into play.”
The Russell 2000 index of small-cap companies has surged after last week entering correction territory, defined as a drop of more than 10% and less than 20%.
Officials from the US and Iran have each argued their nation holds the upper hand in this war.
The Department of War is reportedly gearing up to send thousands of troops from the Army’s 82nd Infantry Division to the Middle East, just days after dispatching roughly 2,500 Marines aboard warships to the region.
It is unclear whether the deployment represents an escalation, or if their presence is meant to serve as a deterrent against further Iranian attacks.
Meanwhile, Tehran is reportedly drafting up legislation to charge ships for safe passage through the strait, further solidifying their control over the vital maritime route – which transports 20% of the world’s oil supply.
Its effective closure of the waterway, with attacks on oil tankers and threats to strike more vessels, has not only created the worst oil supply disruption in history, but it has also upended shipments of fertilizer, piling onto American farmers’ troubles.
Meanwhile, Gulf countries issued a joint statement Thursday blasting Iran’s “criminal” strikes on neighboring nations, including attacks on a massive LNG plant in Qatar and energy facilities in Saudi Arabia.
The statement called on the Iraqi government to “take the necessary measures to immediately halt the attacks,” adding that they are prepared to defend themselves if necessary.
