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April 6, 2026 – 20:30

(Bloomberg) — Oil climbed and stocks whipsawed after President Donald Trump signaled that an escalation of strikes on Iran could come as soon as Tuesday, overshadowing hopes for a ceasefire.

Fears that imminent military action will derail tentative progress toward restoring energy flows through the Strait of Hormuz drove US crude above $112. The S&P 500 edged higher in a volatile session. Bonds and the dollar fluctuated.

“The entire country can be taken out in one night, and that night might be tomorrow night,” Trump said Monday, in an apparent reference to his ultimatum to Iran that expires at 8 p.m. on Tuesday.

Iran reportedly passed to mediator Pakistan a rejection of a ceasefire proposal. It demanded a permanent end to the war, lifting of sanctions, and reconstruction efforts, in addition to protocol for safe passage through Hormuz, according to the state-run Islamic Republic News Agency.

The US military is making preparations for potential strikes on energy targets in Iran, the Wall Street Journal reported, citing multiple officials.

“It’s clearly too early for market watchers to stop thinking about geopolitical risk,” said Jeff Buchbinder at LPL Financial. “For now, we believe the best course of action for investors is to be patient.”

While traders kept a close eye on geopolitical developments, they awaited this week’s key inflation readings. Data showed the US service economy expanded in March at a slower pace as employment shrank by the most since 2023 and input prices accelerated sharply.

The mixed economic signals illustrate the uncertain time for most businesses, according to Jeff Roach at LPL Financial.

“A prolonged struggle over the Strait of Hormuz into May and June would markedly darken the outlook for the US and the global economy,” he said. “For now, given last Friday’s payroll numbers, Fed policymakers have the luxury of remaining in ‘wait and see’ mode.”

While investors have been fixated on geopolitical risks, the macro data continues to point to a resilient economy and a still-constructive earnings outlook, according to Mark Hackett at Nationwide.

“We believe the S&P 500 is carving out a low and think it makes sense to start adding length in cyclical and quality growth trades where earnings remain strong, valuation has compressed, and sentiment is negative,” said Michael Wilson at Morgan Stanley.

Systematic investors are poised to flip back into equity-buying mode after slashing their exposure to multi-year lows during the recent market selloff, according to Goldman Sachs Group Inc.’s trading desk.

Corporate Highlights:

A Goldman Sachs Group Inc. private credit fund said investors sought to pull just under 5% of their cash in the first quarter, narrowly escaping a broader exodus that has forced peers to cap withdrawals. Oracle Corp. named Schneider Electric SE executive Hilary Maxson as its chief financial officer to help the company navigate massive data center development plans and an accompanying cash crunch. AMC Entertainment Holdings Inc. saw a surge in ticket sales and concessions over the long Easter weekend, buoyed by The Super Mario Galaxy Movie. Neurocrine Biosciences Inc. agreed to buy Soleno Therapeutics Inc. for $2.9 billion to expand in rare genetic disorders. Madison Air Solutions Corp. is seeking to raise as much as $2.23 billion in its initial public offering, in what would be the biggest US listing of an industrial company in close to three decades. What Bloomberg strategists say…

“Traders are largely shrugging off Trump’s ultimatums for Iran to reopen the Strait of Hormuz, given their underwhelming track record so far.”

—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.

Some of the main moves in markets:

Stocks

The S&P 500 rose 0.4% as of 2:29 p.m. New York time The Nasdaq 100 rose 0.5% The Dow Jones Industrial Average rose 0.3% The MSCI World Index rose 0.3% Currencies

The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.3% to $1.1551 The British pound rose 0.3% to $1.3243 The Japanese yen was little changed at 159.63 per dollar Cryptocurrencies

Bitcoin rose 3.3% to $69,869.07 Ether rose 3.8% to $2,146.21 Bonds

The yield on 10-year Treasuries declined two basis points to 4.32% Germany’s 10-year yield was little changed at 2.99% Britain’s 10-year yield was little changed at 4.83% Commodities

West Texas Intermediate crude rose 0.8% to $112.47 a barrel Spot gold fell 0.3% to $4,662.38 an ounce ©2026 Bloomberg L.P.