President Trump sent contradictory messages about Iran negotiations on Thursday, first telling reporters he could not commit to a deal, then posting on Truth Social that talks were "going very well." The whiplash between statements triggered a sharp market selloff. The S&P 500 closed down 1.7% as investors fled stocks and bonds over ceasefire doubts. Gold fell as much as 3.4% before trimming losses after Trump announced he was extending a pause on strikes against Iran's energy sites.
Trump accused Iranian negotiators of "begging" to reach a deal. Iran submitted its own peace plan and rejected the Trump administration's 15-point proposal. The rejection signaled that the two nations had moved further apart, not closer together, despite weeks of diplomatic effort.
Crude prices surged as traders bet that military escalation was becoming more likely. Brent crude rose to $108 per barrel as the ceasefire push appeared to falter. The jump reflected concern that a breakdown in talks could trigger renewed airstrikes or Iranian retaliation, disrupting energy supplies from a region that supplies a significant portion of global oil.
Axel Merk, President and Chief Investment Officer at Merk Investments, noted that the conflicting presidential statements were deepening investor confusion about the trajectory of the nearly month-long war. Markets respond to clarity, and Thursday's messaging provided none.
The U.S. and Iran were now standing by hardened positions rather than seeking middle ground. Iran's rejection of the American 15-point plan suggested the two sides had fundamentally different visions for what a ceasefire should include.
The deterioration came after weeks of talks that had initially generated optimism about a possible resolution. That hope now appeared to be fading as both sides dug in on their core demands.
President Trump sent contradictory messages about Iran negotiations on Thursday, first telling reporters he could not commit to a deal, then posting on Truth Social that talks were "going very well." The whiplash between statements triggered a sharp market selloff. The S&P 500 closed down 1.7% as investors fled stocks and bonds over ceasefire doubts. Gold fell as much as 3.4% before trimming losses after Trump announced he was extending a pause on strikes against Iran's energy sites.
The conflicting signals reflected genuine uncertainty about whether either side remained willing to negotiate. Trump accused Iranian negotiators of "begging" to reach a deal after Iran submitted its own peace plan and rejected the Trump administration's 15-point proposal. The rejection signaled that the two nations had moved further apart, not closer together, despite weeks of diplomatic effort.
Crude prices surged as traders bet that military escalation was becoming more likely. Brent crude rose to $108 per barrel as the ceasefire push appeared to falter. The jump reflected concern that a breakdown in talks could trigger renewed airstrikes or Iranian retaliation, disrupting energy supplies from a region that supplies a significant portion of global oil.
Axel Merk, President and Chief Investment Officer at Merk Investments, noted that the conflicting presidential statements were deepening investor confusion about the trajectory of the nearly month-long war. Markets respond to clarity, and Thursday's messaging provided none.
The U.S. and Iran were now standing by hardened positions rather than seeking middle ground. Iran's rejection of the American 15-point plan suggested the two sides had fundamentally different visions for what a ceasefire should include. Neither nation appeared willing to make major concessions, raising the prospect that diplomatic efforts could collapse entirely.
The deterioration came after weeks of talks that had initially generated optimism about a possible resolution. That hope now appeared to be fading as both sides dug in on their core demands.
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