Following Trump’s warning, oil prices rise and stocks fluctuate – US Market Wrap

Oil climbed, and stocks whipsawed after Trump signalled that an escalation of strikes on Iran could come as soon as Tuesday, overshadowing hopes for a ceasefire.
Fears that imminent military action would derail fragile efforts toward restoring energy flows via the Strait of Hormuz boosted US crude prices beyond $112 per barrel. In a tumultuous session, equities hung on to minor gains, with the S&P 500 extending its increase since January. Bonds and the dollar scarcely moved.
Trump said discussions with Iran are “going well” ahead of a Tuesday night deadline to reach an agreement, but he maintained that any deal must include freedom of navigation through the Strait of Hormuz.
If Iran does not accept the US’s requirements, the military may bomb “every bridge in Iran by 12 o’clock tomorrow night” and put every power plant “out of business,” Trump said on Monday.
Iran allegedly informed mediator Pakistan of its rejection of a cease-fire agreement. It sought a permanent end to the war, the relaxation of sanctions, and reconstruction operations, as well as a protocol for safe transit through Hormuz, according to the state-run Islamic Republic News Agency.