U.S. stocks have lost about $1.05 trillion in market value after Iran denied holding peace talks with Washington, while President Donald Trump warned that military action could resume if diplomacy fails.
Donald Trump Warns Iran Talks Have Little Time
Donald Trump said Washington remains in “very deep talks with Iran” and could return to strong military action if negotiations fail. He said diplomacy had little time left, adding, “Either it goes fast or not at all.”
The president said he paused U.S. strikes on Friday after mediating countries asked him to give talks another chance. He said regional officials urged him, “Don’t fire,” while negotiations continued through indirect channels.
Trump said the talks focus on reopening the Strait of Hormuz and restarting discussions around a broader nuclear agreement. Oman has played a central mediation role, while Qatar, Pakistan, Egypt, Steve Witkoff, and Jared Kushner have also been involved.
Regional sources said talks between Oman and Iran had made progress, though no agreement had been reached. Omani Foreign Minister Badr al-Busaidi held calls with officials from Iran, Qatar, Saudi Arabia, Kuwait, and Egypt.
US Stocks Fall as War Risk Rises
U.S. equities weakened after Iran denied peace talks with the United States, raising concern that military action could restart. According to market analysts, about $1 trillion was erased from U.S. stock market value.
Semiconductor stocks led the decline as investors reduced exposure to growth-sensitive sectors. Advanced Micro Devices fell 7.60%, Micron Technology dropped 5.02%, and Nvidia declined 4.81%.
Source: X
Manufacturing and hardware shares also moved lower. Applied Materials fell 6.22%, while Caterpillar lost 4.87% as traders assessed the risk of wider pressure on global trade and energy costs.
Mega-cap stocks saw smaller declines compared with chipmakers. Tesla fell 1.48%, Broadcom slipped 0.54%, and Exxon Mobil declined 1.20%, while U.S. oil prices traded near $84 per barrel.
After the announcement, Bitcoin also took a hit, falling sharply below $64,400 before the market recovered to $64,800 as of press time.
Strait of Hormuz Talks Remain Central
The latest negotiations center on maritime access through the Strait of Hormuz, a key route for global energy flows. Al-Busaidi said discussions focused on fair and practical arrangements for navigation through the waterway.
One regional proposal would allow Iran, Oman, and nearby countries to collect reasonable service fees tied to maritime security and environmental protection. Another option would direct such fees into a joint fund involving the International Maritime Organization.
Donald Trump said he stopped strikes after advisers and military officials presented a new plan targeting Iranian areas near the southern coast and Strait of Hormuz. He said “nothing gained, nothing lost” when explaining the pause.
The president also dismissed concerns that U.S. ammunition stocks were running low after months of bombing Iran. He told reporters, “We have a lot,” when asked about available supplies.
Trump is scheduled to meet Israeli Prime Minister Benjamin Netanyahu at the White House on Tuesday. He said the discussion would include Iran and his view that Tehran would have advanced further without U.S. military action.
