US stocks fell on Thursday as uncertainty around a possible ceasefire between the United States and Iran kept investors cautious and pushed oil prices higher. The selling deepened after President Donald Trump said he would not commit to a deal to end the conflict, even as Iran sent its response through intermediaries and waited for a reply. Markets reacted quickly, with equities, bonds, oil, and cryptocurrencies all posting notable moves during the session.

Stocks Retreat as Doubts Over a Deal Return

The S&P 500 fell 1.1% by 12:32 p.m. in New York, while the NASDAQ 100 dropped 1.5% and the Dow Jones Industrial Average lost 0.8%. In Europe, the Stoxx Europe 600 fell 1.2%, and the MSCI World Index declined 1.1%. The broad pullback showed that investors were reducing risk across major markets as war-related uncertainty stayed high.

Earlier in the day, stocks briefly trimmed losses after Iran reiterated its terms for a ceasefire through intermediaries. This move did not last. Traders turned cautious again as questions grew over whether Washington and Tehran could still reach an agreement within the short time frame Trump had set.

The market mood also reflected concern that the conflict may last longer than many investors had expected at the start of the week. Recent swings in stocks and oil have followed each new signal on talks, military action, and shipping conditions in the Gulf. Thursday’s trading showed that any sign of delay or deadlock still has the power to reverse sentiment quickly.

Trump Remarks and Oil Surge Keep Pressure on Sentiment

Oil stayed at the center of the market reaction. Brent crude rose about 6% and traded around $107 to $108 a barrel, while US crude climbed into the low-to-mid $90s. The advance came as the conflict hampered flows through the Strait of Hormuz and raised concern over how long supply pressures may last.

Trump warned Iran to get serious about negotiations and later said he would not commit to a deal yet. Those remarks added to market caution, especially as the conflict affects shipping through the Strait of Hormuz. Trump also said Tehran had allowed 10 oil tankers to pass through the waterway, but the route was under severe strain.

Barclays said a prolonged attack in Hormuz could remove 13 million to 14 million barrels a day from supply. The bank said that the level of disruption would amount to one of the largest oil shocks in decades, especially with global demand still running above 100 million barrels a day. It also said Brent could stay near $100 to $110 if disruptions continue into April or May.

Bonds, Crypto, and Company Moves Add to Volatility

The rise in oil fed into other markets as bond yields moved higher and the dollar strengthened. The yield on the 10-year US Treasury rose to about 4.40%, while government bond yields in Germany and Britain also advanced. Higher energy prices added to inflation concerns and reduced confidence that central banks would move quickly to lower rates.

Cryptocurrencies also moved lower as investors stepped back from risk assets. Bitcoin fell about 3% to $68,850, while Ether dropped 4.7% to around $2,064. Gold also extended its monthly decline during the session, showing that the day’s market moves were broad and not limited to stocks alone. 

Corporate highlights also stayed in focus during the session. 

• Memory chip stocks extended losses after new AI storage research raised fresh questions for the sector.

• Jefferies Financial Group fell after reporting results below estimates.

• Equitable Holdings and Corebridge Financial moved into focus on news of an all-stock merger valued at $22 billion.

• Macy’s gained attention after saying its AI shopping assistant increased online spending among users.

• Henkel announced a $1.4 billion deal to buy Olaplex Holdings.

• Wave Life Sciences fell after new drug data failed to meet investor expectations.

• Robinhood stayed in focus after receiving a buy rating and an $88 price target from Jefferies. 

• Meta Platforms was among the major technology stocks that moved lower as the broader market weakened.

The market’s direction is tied closely to developments between Washington and Tehran. Until there is a clearer path toward a ceasefire, investors may focus on oil prices, shipping conditions, and signals from both governments.

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