New York, April 2, 2026, 11:13 (EDT)
Stocks slipped sharply Thursday morning after President Donald Trump’s prime-time address on Iran ramped up military rhetoric, leaving investors without a clear exit path. The Dow Jones Industrial Average dropped 565 points; S&P 500 slid 1.21%, while the Nasdaq Composite shed 1.68%. Oil prices took off—Brent crude jumped 7.9% to $109.12, and West Texas Intermediate surged 12.5% to $112.60 a barrel.
The reversal mattered: it unwound a relief rally that had only just picked up steam the day before. Markets jumped Tuesday after the Wall Street Journal reported that Trump might end the military operation even if the Strait of Hormuz remained mostly shut. The S&P 500 soared 2.91%, with the Nasdaq up 3.83% and the Dow gaining 2.49%—the biggest one-day jumps for all three since May 2025.
Wednesday kept the upbeat mood alive. U.S. stocks climbed, while Europe’s STOXX 600 jumped 2.5% after Trump declared Washington would leave Iran “pretty quickly.” The turnaround lands just ahead of the NYSE’s Good Friday closure on April 3, which means U.S. stock trading pauses for the holiday. AP News
During his address Wednesday night, Trump said U.S. troops were nearing their objectives, though he warned that strikes could ramp up for another two to three weeks unless Iran agreed to Washington’s terms. He stopped short of detailing any strategy to reopen the Strait of Hormuz, the chokepoint that’s been driving the latest market volatility.
The waterway is crucial—it moves about 20% of the world’s oil and LNG cargoes. Britain gathered representatives from some 40 nations for virtual talks on Thursday aimed at reopening the route, but France pushed back, insisting the process must begin with diplomatic steps and dialogue with Iran.
“The problem is that we didn’t learn anything new,” said Art Hogan, chief market strategist at B Riley Wealth, as the selloff picked up speed. Investors were hoping for some sign of how the war might wind down, but the speech offered nothing of the sort. Reuters
Beneath the headline numbers, the divergence was clear: Exxon Mobil and Chevron each climbed over 2% alongside crude’s move up. United Airlines slid, joining other airlines dragged lower by renewed concerns about fuel costs. Airline stocks in Europe dropped as well, giving up gains from Wednesday’s brief rebound.
Some analysts argued the speech brought stagflation worries—sluggish growth, rising prices—right back to the forefront, and markets had already begun factoring that in as early as March. Mike Houlahan at Electus Financial said the remarks just kicked any solution further down the road. Russel Chesler from Vaneck summed up investor anxiety in one line: when does this end?
This trade isn’t exactly stable. Wednesday saw a more than 8% surge in European airline stocks as Brent crude pulled back; now, Priyanka Sachdeva at Phillip Nova warns oil could push for new highs if maritime threats escalate further and markets remain deprived of any “clear mention of ceasefire or diplomatic engagement.” Reuters
OPEC+ could step in as a pressure release. According to sources, the group is expected to consider another output hike on Sunday—though if it happens, that would mostly signal intent, since actual supply wouldn’t ramp up as long as Hormuz stays closed. With the U.S. stock market shuttered Friday, investors are left holding the uncertainty into next week.
