U.S. stocks close｜Trump considers military action against Iran; crude oil rises 2.8%; Dow up 95 points; S&P breaks through 7,400 for the first time

According to the US news website Axios, President Trump is considering taking military action against Iran. US officials stated that Trump still hopes to reach an agreement to end the conflict, but Iran has rejected the US’s key demands and refused to make substantial concessions on its nuclear program, bringing military options back into focus.

Crude oil futures in New York surged up to 5.2% on Monday, US stocks fluctuated upward, with the Dow and Nasdaq both hitting record highs.

The Dow closed up 95 points, at 49,704; the S&P 500 rose 0.19%, at 7,412; the Nasdaq gained 0.1%, at 26,274;

In focus stocks, chip memory stocks continued to attract funds, with Micron (US: MU) rising 6.5%; similarly reaching new highs was Intel (US: INTC), which reportedly reached a preliminary agreement with Apple for contract manufacturing of chips, climbing another 3.6% on Monday. Nvidia’s stock rose 2%, and Tesla increased by 3.9%.

An Iranian official stated that negotiations with the US face multiple serious disagreements, including issues related to uranium enrichment disposal, the timeline for halting uranium enrichment activities, and war reparations. Iranian Parliament Speaker Mohammad Bagher Ghalibaf said that Iran’s armed forces are prepared to respond to any acts of aggression.

After Trump rejected Iran’s proposal, he stated that the Iran ceasefire “is in serious jeopardy,” describing the truce as “incredibly fragile,” like hanging saltwater.

Trump also said Iran had initially reached a consensus with the US, but later Tehran backtracked. However, the US still has the possibility of resolving the Iran issue through diplomatic means.

Trump emphasized that Iran cannot possess nuclear weapons, and Iran also claimed that the US will have to clear nuclear dust.

On Monday, President Trump told Fox News that he is considering restarting the “Project Freedom” that was briefly implemented last week, but this time the scope will be expanded beyond escort ships passing through the Strait of Hormuz. Additionally, he said he has not yet made a final decision on restarting the plan.

Trump announced this plan for the first time last week, but then paused it during peace negotiations with Tehran.

Pakistan emphasized that it will continue efforts to break the deadlock in US-Iran negotiations, and stated that there is “no imminent danger” of war between the US and Iran. Iran reiterated that it is ready to reopen the Strait of Hormuz if the US ends its blockade of its ports.

After Trump rejected Iran’s proposal, the market continued to watch the developments of US-Iran tensions. According to Iran’s semi-official Tasnim News Agency, Iran’s domestically produced Ghadir-class mini submarines are acting as “invisible guardians” of the Strait of Hormuz. The report states that the submarines are designed for shallow waters in the Persian Gulf and Strait of Hormuz, and have become a strategic weapon. However, this has not caused significant market fears.

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Crude oil futures in New York reached a high of $100.37, closing at $98.07, still up 2.78%; Brent crude oil rose 2.88%, closing at $104.21.

The US dollar index previously rose 0.26%, to 98.1563. In earnings news, Circle (US: CRCL) will release its earnings after market close.

Morgan Stanley stated that the oil market is “racing against time,” with investors expecting the Strait to reopen, so crude futures have not yet surpassed their 2022 highs. However, if the blockade in the Strait of Hormuz continues until June and exceeds what China or the US can bear, the market could tighten again.

The bank’s baseline forecast is that the Strait of Hormuz will reopen before the US needs to restrict exports and China needs to curb imports. But if supply continues to be blocked and the blockade persists until late June or even July, Brent crude oil may face pressure and could rise.

US April existing home sales increased by 0.2% month-over-month to an annualized rate of 4.02 million units, below the expected 4.05 million units. The median home price rose 0.9% year-over-year to $417.7k.

Hong Kong stocks and ADR markets are continuously updating, see: Next page

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Market movements last week, details at: 【US Stock Close】 Nasdaq up 1.7%, S&P also hit new highs, Intel soared 14%, Iran claims cargo ships attacked by US military

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