Midnight reversal! Iran: Launching missile attacks! Latest news from the Strait of Hormuz

Game of the Strait of Hormuz dominates market sentiment.

Overnight, the U.S. stock market staged a dramatic reversal. The Nasdaq fell more than 2% early in the session, then surged sharply and turned positive. Analysts said that as diplomatic de-escalation signals emerged from the Middle East, market anxiety eased. During trading in the U.S. stock market, there were reports that Iran and Oman are drafting an agreement aimed at implementing “passage supervision” for the shipping of vessels through the Strait of Hormuz, while also emphasizing that they would not restrict vessel transit.

According to the latest report from CCTV News, late on April 2 local time, Sadar Shekaki, a senior spokesperson of Iran’s armed forces, said that the Strait of Hormuz would continue to remain closed to the United States and Israel.

On the Middle East fighting front, according to Xinhua, late on the evening of April 2 local time, Iran launched another round of missile strikes on Tel Aviv, Israel, forcing hundreds of thousands of Israelis to take shelter in air-raid shelters and safe rooms. Also, according to CCTV International News, a statement issued by the naval command headquarters of Iran’s Islamic Revolutionary Guard Corps said it carried out strikes on the U.S. Oracle data center located in Dubai, the United Arab Emirates, and the Amazon data center located in Bahrain. However, the Dubai Media Office has denied the report.

Dramatic reversal in U.S. stocks

On April 2, U.S. Eastern Time, all three major U.S. stock indexes opened lower and then moved higher. By the close, the Dow fell 0.13%, the Nasdaq rose 0.18%, and the S&P 500 Index rose 0.11%. Early in the session, the Dow briefly dropped by more than 600 points, while the Nasdaq briefly fell by more than 2%.

Worth noting is that Friday was “Good Friday,” so the U.S. stock market was closed. This week marked the first weekly gain for U.S. stocks since the outbreak of the war. The weekly gains for the Dow, Nasdaq, and S&P 500 were 2.96%, 4.44%, and 3.36%, respectively.

Large technology stocks were mixed. Microsoft rose more than 1%, Nvidia rose nearly 1%, and Apple closed slightly higher. Amazon, Google, and Meta closed slightly lower. Tesla plunged more than 5%. The company’s reported first-quarter 2026 delivery data came in below Wall Street expectations. This was the company’s second consecutive quarter of failing to meet market estimates, reflecting ongoing challenges in its automotive business.

Analysts said that because the Middle East has released some signals of diplomatic easing, market sentiment has stabilized somewhat. Previously, investors had been uneasy after U.S. President Trump threatened tougher action against Iran.

According to reports, Iran and Oman are drafting an agreement aimed at implementing “passage supervision” for the shipping of vessels through the Strait of Hormuz, while also emphasizing that they will not restrict vessel transit. Meanwhile, the UK said that dozens of countries are discussing plans to end the crisis. These developments eased market concerns that global oil supply could be disrupted for a prolonged period.

Before this, due to Trump’s hint that more aggressive military action might be taken, rising oil prices fueled market anxiety, and the three major U.S. stock indexes briefly fell across the board.

International oil prices surged sharply. The May WTI crude oil settlement price closed at $111.54 per barrel, up 11.41%; the June Brent crude oil settlement price closed at $109.03 per barrel, up 7.78%.

However, traders are pricing October oil at around $82 per barrel, indicating that the market expects any supply disruption to be temporary. Baird market strategist Michael Antonelli said, “Right now, the stock market lacks a clear direction, but the pricing of October oil reflects the market’s view that this crisis is likely to end before fall.”

Adam Turnquist, chief technical strategist at LPL Financial, said in a report that for markets, the longer the Middle East conflict lasts, the greater the persistent pressure it exerts on inflation, global economic growth, interest rates, and equity market valuations.

Iran issues a warning

At present, the intensity of the conflict in the Middle East continues to escalate, and neither the U.S. nor Israel nor Iran has shown any intention to stop fighting. After Trump publicly released a video of “blowing up Iran’s biggest bridge” and pressured the Iranian side into agreeing to an arrangement, Iran’s foreign minister responded forcefully, saying that attacks on civilian facilities will not force Iran to surrender.

According to CCTV News, on April 2, the spokesperson of Iran’s Armed Forces Khatam al-Anbia Central Headquarters said in a statement that the United States and Israel believe the Iranian military targets struck earlier are important, but Iran’s strategic military production bases are deployed in places that are “completely unknown to the U.S. and Israel, and that they will never be able to find.”

In addition, on April 2, Iran’s commander-in-chief Amir Hatami issued orders to the operations command, saying that it is necessary to remain extremely vigilant, closely monitor U.S. and Israeli moves, and at an appropriate time counterattack the enemy. Once the enemy launches a ground war, it will not be allowed for even a single enemy soldier to survive.

Late on April 2 local time, Iran also launched another round of missile strikes on Tel Aviv, Israel, forcing hundreds of thousands of Israelis to take shelter in air-raid shelters and safe rooms.

That day, Iran launched the 91st round of military action of Operation “True Promise-4,” carrying out another round of missile strikes on Tel Aviv and the central Haifa area. It is understood that an Iranian ballistic missile carrying several hundred kilograms of warheads caused severe damage to multiple parts of the targeted sites.

Also, according to Xinhua, Iran’s Islamic Revolutionary Guard Corps issued a statement on Thursday saying that during the 90th wave offensive of Operation “True Promise-4,” it carried out strikes and destroyed major portions of several U.S. and Israeli-related industrial and military targets in the region.

Iran’s military issued a statement late Thursday saying that south of Iran’s largest island, Qeshm Island, it “used a new air-defense system to hit an advanced enemy aircraft,” and that after being hit, the aircraft crashed into the Persian Gulf.

Subsequently, the U.S. Central Command denied the Iranian claim that it shot down an “enemy” fighter aircraft near Qeshm Island in the Strait of Hormuz, saying that all U.S. military aircraft have currently been confirmed safe and there has been no case of being shot down. It also noted that similar Iranian statements had been issued multiple times before, but had all been verified to be lies.

According to CCTV News, on Thursday Israel Defense Forces said that earlier this week, Israeli airstrikes hit Iran’s capital Tehran and killed Jamsheed Eschaki, the head of Iran’s oil department. Israel said that the oil department managed by Eschaki is an important component of Iran’s armed forces and provides funding support for military activities through oil revenues. Eschaki has long been responsible for relevant fund operations and has also participated in providing financing for military projects such as missile production.

The continued conflict among the U.S., Israel, and Iran has deeply worried the international community. On Thursday, UN Secretary-General Guterres issued a stern warning saying, “We are on the edge of a broader war. We urge the U.S. to stop attacking Iran, and at the same time call on Iran to stop attacking its neighboring countries. Several European countries have refused one after another to provide the U.S. with airspace or base support for its military operations. The rifts among NATO allies are becoming increasingly obvious.”

（Source: Securities Times China）