President Donald Trump set an 8 PM Eastern deadline for Iran to accept a deal keeping the Strait of Hormuz open to shipping or face strikes on power plants and bridges. Iranian energy infrastructure could face what Trump calls "complete demolition" if no agreement occurs.
Markets opened mixed Tuesday as investors weighed the geopolitical tensions. European markets showed modest gains with the Euro Stoxx 50 up 0.5%. Germany's DAX gained 0.2% while France's CAC 40 and Italy's FTSE MIB rose close to 1% each. The UK's FTSE 100 remained flat.
Asian markets delivered mixed results ahead of the deadline. South Korea's Kospi jumped 0.8% while Tokyo's Nikkei 225 traded flat. Hong Kong's Hang Seng fell 0.8% while Australia's ASX 200 and Taiwan's Taiex both rose 2%.
Oil prices climbed as benchmark US crude trades at $113.50 per barrel, with Brent crude at $111. Both gained approximately 1%. Gold rose 0.77% to $4,685 while silver increased 0.2% to $72.95 per ounce.
President Trump renewed threats on Sunday, stating "Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!"
US futures opened 0.1% to 0.3% lower Tuesday following Monday's strong performance when the S&P 500 rose 0.4%, posting its first winning week in six. The average gasoline price reached $4.12 per gallon nationwide, up from below $3 before the February war began.