Trump Delays Iran Strike Threat as Markets Tumble Over Strait of Hormuz Crisis

President Trump extended his deadline for Iran to reopen the Strait of Hormuz until April 6, citing progress in negotiations after stock markets suffered major losses. The president had previously threatened to attack Iranian energy facilities if the critical oil shipping route remained closed. Wall Street saw significant drops with the S&P 500 falling 1.7% amid ongoing tensions.

WASHINGTON — President Donald Trump postponed his ultimatum to Iran on Thursday, granting the nation additional time to reopen the Strait of Hormuz as financial markets experienced significant turbulence over the escalating crisis.

The president extended his deadline until April 6, stating that diplomatic discussions were progressing favorably, even though Iranian officials continue to publicly deny participating in negotiations with Washington regarding a 15-point peace proposal transmitted through Pakistani intermediaries.

“They asked for seven (days),” Trump revealed during his appearance on Fox News Channel’s “The Five” after announcing the extension on social media. “And I said, ‘I’m going to give you 10.'”

The announcement came following another volatile trading session on Wall Street, marking the steepest decline since the Iranian conflict began. The S&P 500 plummeted 1.7%, while the Dow Jones Industrial Average shed 469 points or 1%, and the Nasdaq composite tumbled 2.4%, dropping more than 10% from its peak earlier this year.

Trump initially issued his warning to strike Iranian energy infrastructure on Saturday but has repeatedly wavered on the timeline. His original ultimatum provided Tehran with 48 hours to clear the strategic waterway, but he postponed action on Monday, adding five more days after Asian markets fluctuated wildly. Thursday’s market instability prompted yet another delay.

This pattern mirrors previous instances where Trump has modified policy decisions in response to market reactions. Last April, following the implementation of tariffs that caused the S&P 500’s worst two-day decline in five years, Trump announced a 90-day suspension of the harshest tariffs for most nations except China.

However, Trump rejected suggestions that his administration lacks a clear strategy for resolving the conflict. During a Cabinet meeting with reporters present, he maintained that Iran had already suffered a “decisive defeat.”

“We have very substantial talks going on with respect to Iran — with the right people,” Trump declared.

Iran has challenged Trump to execute his threats, warning of retaliation against regional infrastructure, including water desalination plants, if the United States or Israel targets its power facilities. The nation has also strengthened its control over the strait, establishing what resembles a checkpoint system for vessels navigating the narrow passage.

Market uncertainty surrounding Trump’s ultimatum has complicated the White House’s efforts to control the conflict’s messaging, with international investors concerned about whether and how the president can end the war and restore access to the vital shipping lane, through which approximately 20% of global oil flows daily.

Earlier Thursday, Trump indicated he remained undecided about granting Iran additional time to fully reopen the waterway. He said his decision would depend on reports from his negotiating team — envoy Steve Witkoff, son-in-law Jared Kushner, and Vice President JD Vance — regarding broader peace discussions.

Trump also claimed Tehran was “begging” for an agreement while simultaneously criticizing Iranian negotiators to “get serious soon, before it’s too late.”

Witkoff emphasized the administration’s efforts to persuade Iran “that this is the inflection point with no good alternatives for them other than more death and destruction.”

The former New York real estate executive turned diplomat informed Trump’s Cabinet that the administration had received “strong signs” indicating peace was achievable, noting that “Iran is looking for an off-ramp” following Trump’s power plant threats.

Meanwhile, Trump and senior officials attempted to minimize the impact of rising fuel costs affecting consumers across Asia, Europe, and the United States.

“I thought the oil prices would go up more and I thought the stock market would go down more,” Trump commented. “Hasn’t been nearly as severe as I thought. I think they have confidence in maybe the American president and maybe the people sitting around this table.”

Trump dismissed the significance of building international partnerships to protect tanker traffic through the strait, arguing the United States possesses “so much oil — our country is not affected by this.”

Although the United States doesn’t depend on resources transiting the strait, global oil pricing has elevated fuel costs worldwide, including domestically, where average gasoline prices have increased by more than a dollar from the previous month.

Treasury Secretary Scott Bessent stated that Iran, by limiting oil and natural gas shipments through the strait, is “trying to take control of the global economy through a chokepoint that we believe does not exist.”

Bessent’s statement was misleading, as the strait remains crucial, particularly for Asian nations, and energy costs have risen since the Iranian conflict commenced.

He expressed confidence that additional tankers would navigate the Strait of Hormuz successfully. “I am confident that shipping traffic will continue to increase on a daily basis, even before we secure” the strait, Bessent said.

Despite White House assertions of diplomatic progress, Trump continues expanding military presence in the Middle East.

The Pentagon is preparing to deploy at least 1,000 soldiers from the Army’s elite 82nd Airborne Division to support Iranian operations, according to earlier AP reporting this week. This deployment would supplement approximately 5,000 Marines being relocated to the region, adding to the 50,000 U.S. forces already stationed there.

The military buildup has sparked speculation that Trump is positioning forces for limited ground operations to secure the strait’s coastlines or capture Kharg Island, a vital component of Iran’s oil infrastructure.

Defense analysts acknowledge U.S. ground forces could successfully capture Kharg and help secure the strait, but warn of potential prolonged conflict with significant costs in American lives and resources.

“Yes, we could do it, but the question isn’t can we do it?” explained Mick Mulroy, former deputy assistant secretary of defense now with the Middle East Institute in Washington. “It’s — should we do it? And the best route out is going to be diplomacy. I know it’s easier said than done, but diplomacy and negotiations only work if both sides are willing to compromise.”

Trump also announced Thursday that Iran is permitting several Pakistan-flagged tankers to pass through the strait, which he optimistically interpreted as a positive gesture for ongoing negotiations.

“Well, I guess we’re dealing with the right people,” Trump concluded.