US President Donald Trump took to social network Truth Social on Monday evening (India time) to claim that “Iran is completely collapsing”, without elaborating. His latest post comes at a time when Washington and Tehran appear to be in a military-diplomatic stalemate, with no direct talks currently under way after a 60-day memorandum of understanding (MoU) expired this month without yielding a permanent peace deal.
US Treasury Secretary Scott Bessent was slated to reveal details of a fresh sanctions package against Iran later in the day.
Dow Jones Industrial Average (DJIA) futures were down 0.1 per cent, S&P 500 futures were down 0.2 per cent, while Nasdaq Composite futures were down 0.6 per cent at the last count, moments ahead of Monday’s opening bell on Wall Street.
The contracts indicated a muted start in the US market.
Brent crude — a global oil benchmark — was down 1.1 per cent at $91.6 a barrel.
Analysts say the markets have become more selective in treating headlines coming in from both sides as alarming amid frequent threats, reversals and shifting claims.
Last week, Trump announced what he described as “economic D-Day” against Iran. The US Treasury Secretary noted that the upcoming economic sanctions on Iran are set to be the “single greatest financial offensive ever”.
The Iranian side quickly reacted, reiterating its position that it will shut down all oil exports from the Gulf “if the economic war continues” and that any support for the US economic sanctions will be considered an “act of war”.
Trump’s post had Truth Social users in splits
“McDonald Dumb Dumb, not only are you a liar, but also so detached from what actually people think of you. I wouldn’t hire you as my campaign manager. Say hello to your communist dictator friend in North Korea as he’s your only friend now,” wrote one user.
“DETAILS PLEASE?,” posted another.
“No it’s not. Mean while gas is 5 bucks and treasury yields are rising… Oh yea, we are 40 trillion in debt. So much winning,” one post read.
Iranian currency slumps to record low vs dollar
Earlier on Monday, the Iranian rial depreciated to its lowest on record against the US dollar.
The rial slumped to as low as 2.02 million against the greenback, according to foreign media reports, reflecting growing anxiety over the prospect of a sharper economic confrontation between the US and Iran. Read more on Iranian rial
Strait of Hormuz update
The Strait of Hormuz — a sea route central to the West Asia conflict — remains effectively blocked with commercial shipping sharply curtailed amid continuing security risks and competing claims by Washington and Tehran over access to the waterway.
Normally, the strait, which links the Gulf of Oman with the Persian Gulf and ultimately with the Arabian Sea, enables the transit of about one-fifth of the world’s oil and gas supplies.
According to foreign media reports, the Strait of Hormuz continued to witness very little activity relative to its normal operations.
The restrictions were the result of competing US and Iranian measures, with Iran retaining de facto control over permission for some vessels to transit and the US maintaining pressure on Iranian shipping and seeking to ensure commercial movement through the waterway.
The effective closure of the Strait of Hormuz has constrained Gulf exports, lifted freight and insurance risks, and added a persistent geopolitical premium to crude prices.