US equities fell at the open on Tuesday after Donald Trump warned that a “whole civilisation will die tonight” unless Iran complies with US demands.
In a post on Truth Social, Trump suggested that while he does not want such an outcome, it may be unavoidable, adding that regime change could potentially lead to a more favourable outcome.
Markets reacted cautiously, with oil prices remaining elevated. West Texas Intermediate rebounded towards monthly highs of around $116 per barrel, reversing earlier losses amid ongoing geopolitical risk that continues to underpin energy markets.
US equities opened in negative territory, with the Dow Jones Industrial Average falling more than 100 points, or 0.2%, to 46,565. The S&P 500 declined nearly 19 points, or 0.3%, to 6,593, while the Nasdaq Composite dropped 93 points, or 0.4%, to 21,903.
The broad-based sell-off reflects fading hopes that Trump’s deadline for a breakthrough in talks with Iran would deliver progress. Instead, renewed threats and reports that Iranian officials are unwilling to concede without a lasting agreement have heightened market uncertainty and risk aversion.
