US stock futures fell and oil surged after President Donald Trump gave Iran 48 hours to reopen the Strait of Hormuz or face strikes on its power infrastructure.
The S&P 500, Nasdaq 100 and Dow Jones futures declined at Sunday’s open while Brent and WTI crude climbed toward $114 per barrel as traders priced in disruption risks.
“Hit and obliterate Iran’s power plants if the strait remains closed within 48 hours,”
Trump said in a Truth Social post.
Iran responded by warning it would fully shut the strait and target US, Israeli and Gulf infrastructure, including energy facilities and desalination plants, raising fears of a regional “Gulf blackout.”
Bitcoin fell below $69,000 and gold dropped 2.5%, signalling forced liquidation and dollar strength rather than traditional safe haven demand as risk assets sold off globally.
The confrontation comes amid stretched equity valuations, elevated leverage, and limited Federal Reserve flexibility, with policymakers holding rates at 3.5% to 3.75% and signalling only one cut in 2026.
Analysts warn that failure to resolve the standoff could trigger a full Hormuz closure, push oil toward $150 per barrel, and accelerate institutional outflows across equities, bonds and crypto markets.
At the time of reporting, Bitcoin price was $68,294.90.