As the Trump deadline approaches, the market "bears the brunt first." The Nasdaq drops over 1%, and oil prices surge.

Zhitong Finance APP learned that, as a key deadline set by the United States for Iran approaches, global financial markets have seen a clear increase in volatility. US stocks have come under pressure and declined, while oil prices have surged significantly.

As of Tuesday trading hours, the Dow Jones Industrial Average is down more than 200 points, a decline of about 0.5%; the S&P 500 Index is down 0.71%; and the Nasdaq is down more than 1%. As geopolitical risks heat up, investors’ risk appetite has clearly pulled back.

The US President Trump previously set a deadline, requiring Iran to reopen the Strait of Hormuz by 8:00 pm Eastern Time on Tuesday, or else it would face strikes on key infrastructure such as its power and bridges. However, the latest remarks and reports from multiple parties indicate that the likelihood of reaching an agreement in the near term is declining. Trump even warned that, “Tonight, the entire civilization may disappear.”

Amid mounting tensions, the US has already carried out military action. According to two US officials, before the deadline arrived, the US conducted strikes on Iran’s Khark Island in the early hours of Tuesday local time, launching operations targeting more than 50 military targets, but without involving oil infrastructure.

Meanwhile, Iran’s stance has become noticeably tougher. According to Iranian state media, Tehran has shut all direct and indirect diplomatic communication channels with the United States, further narrowing the scope for negotiation. The commander of the Islamic Revolutionary Guard Corps Aerospace Force said that the war has entered a “new phase,” and that new missile systems have been deployed, with the scale of strikes expected to “double.”

Driven by this, global markets have experienced sharp volatility. Energy prices have climbed rapidly. US West Texas Intermediate (WTI) crude oil futures rose by about $4 intraday, up 3.6%, further pushing toward high levels; Brent crude oil is also staying at elevated levels. Gold prices saw a sharp drop at one point, with the day’s decline nearing $40.

Although negotiations have not been fully terminated, market sentiment is generally pessimistic about reaching a comprehensive agreement in the near term. Analysts said that against the backdrop of diplomatic channels being closed and an escalation in military confrontation, the risk of spillover from the conflict has risen significantly, and the situation in the Strait of Hormuz will remain a core driver of future market volatility.

UBS has cut its optimistic outlook for the stock market. The bank lowered its 2026 S&P 500 target from 7700 points to 7500 points, and advised investors to reduce their risk exposure to energy-sensitive markets, while still emphasizing that they should not completely exit risk assets.

On individual stocks, in the technology sector, Broadcom (AVGO.US) has performed relatively resiliently. Benefiting from expanding cooperation in artificial intelligence with Google and Anthropic, its share price has risen by more than 3% against the market trend.

(Editor: Wang Zhiqiang HF013)

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