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Investors are caught between positioning for a swift deal that ends the war and a significant escalation that could send oil prices and bond yields soaring further as they start a holiday-thinned trading week.
President Donald Trump issued a profanity-laden ultimatum on Sunday, warning Iran it would be “living in Hell” if the Strait of Hormuz isn’t reopened by Tuesday, 8 p.m. ET, declaring it “Power Plant Day, and Bridge Day, all wrapped up in one.”
Separately, in an interview with Fox News on Sunday, Trump said he was hopeful that there was a “good chance” for a deal to be reached by Monday.
Conflicting signals have set up a week in which investors are forced to position for starkly divergent outcomes.
