US stock indices posted steep losses yesterday in a move which saw the NASDAQ 100 hit lows last seen in early September. This came as President Trump’s original deadline before launching extensive attacks on Iran’s key energy infrastructure came close to expiry.
Source: TN Trader
That deadline was set for today, and included the demand that Iran reopen the Strait of Hormuz, a vital chokepoint for around 20% of global supplies of crude oil and liquefied natural gas.
It is also a prime route for chemicals involved in the manufacture of fertilisers, and helium, so vital in chip manufacture, amongst other things. But Mr Trump announced a ten-day extension to the deadline, just as US exchanges closed last night. The news saw a sharp spike higher in stock indices while crude oil prices backed off from highs earlier in the day.
The president insisted that there had been good progress in peace negotiations, so he was pushing back his deadline to 6th April. But the moves started to unwind overnight as Tehran said that it was not engaged in direct talks. US stock index futures pulled back from overnight highs to trade in negative territory in early European trade.
