{"id":61412,"date":"2026-04-29T12:39:09","date_gmt":"2026-04-29T16:39:09","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-surges-7-as-trump-rejects-iran-deal-us-iran-conflict-costs-hit-25-billion\/61412\/"},"modified":"2026-04-29T12:39:09","modified_gmt":"2026-04-29T16:39:09","slug":"oil-surges-7-as-trump-rejects-iran-deal-us-iran-conflict-costs-hit-25-billion","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-surges-7-as-trump-rejects-iran-deal-us-iran-conflict-costs-hit-25-billion\/61412\/","title":{"rendered":"Oil Surges 7% as Trump Rejects Iran Deal; US-Iran Conflict Costs Hit $25 Billion"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Global oil prices (Brent and WTI) surged approximately 7%<\/strong> after President Trump rejected an Iranian proposal regarding the <strong>Strait of Hormuz<\/strong>, maintaining a strict naval blockade.<\/li>\n<li><strong>The conflict with Iran has cost the U.S. $25 billion<\/strong> as it reaches the 60-day mark, with <strong>U.S. Central Command (CENTCOM)<\/strong> reportedly preparing for high-intensity strikes.<\/li>\n<li><strong>U.S. gasoline futures jumped over 5%<\/strong> to their highest levels since 2022, threatening to reignite inflationary pressures.<\/li>\n<li><strong>Bill Ackman<\/strong> declared the equity market has passed a <strong>&quot;stupidly cheap&quot; bottom<\/strong>, stating his intent to grow Pershing Square to the size of Blackstone (<a href=\"\/stock\/BX\">BX<\/a>).<\/li>\n<li><strong>UK Gilt yields hit multi-decade highs<\/strong>, with 20- and 30-year yields on track for their highest closes since 1998.<\/li>\n<\/ul>\n<h2>Geopolitical Escalation and Energy Markets<\/h2>\n<p>Energy markets reacted violently today as President Trump officially rejected an Iranian proposal to ease tensions, asserting that the <strong>U.S. naval blockade<\/strong> will remain until a deal includes Iran&#39;s nuclear program. Trump told <em>Axios<\/em> that Iranian oil storage facilities and pipelines are <strong>&quot;nearing explosion&quot;<\/strong> due to the blockade, which has effectively halted the country&#39;s exports.<\/p>\n<p>In response to the deadlock, <strong>U.S. Central Command (CENTCOM)<\/strong> has reportedly finalized plans for a &quot;short wave&quot; of high-intensity strikes aimed at breaking the Iranian resistance. A Pentagon official confirmed that the conflict has already cost the U.S. <strong>$25 billion<\/strong> over the last two months. <em>Market participants are increasingly concerned that a direct military strike could lead to a prolonged disruption of global energy supplies.<\/em><\/p>\n<p><strong>U.S. gasoline futures<\/strong> spiked more than 5% on the news, reaching levels not seen since 2022. This surge comes as <strong>Brent and WTI crude<\/strong> both climbed roughly 7%, reflecting a significant risk premium being priced back into the market.<\/p>\n<h2>Iranian Defiance and Regional Tensions<\/h2>\n<p>Iranian officials have signaled they will not back down under U.S. economic and military pressure. The Deputy Speaker of the Iranian Parliament stated that the <strong>&quot;Iranian nation&quot;<\/strong> will stand against the enemy if the U.S. does not accept the Islamic Republic&#39;s demands.<\/p>\n<p>Speaker Mohammad Bagher Ghalibaf accused President Trump of attempting to force a <strong>&quot;surrender&quot;<\/strong> through economic strangulation. Meanwhile, regional diplomacy continues as <strong>UAE President Sheikh Mohammed bin Zayed<\/strong> met with Bahrain\u2019s King Hamad bin Isa Al Khalifa to discuss the escalating regional instability.<\/p>\n<h2>Corporate Developments and Market Sentiment<\/h2>\n<p>Despite the geopolitical turmoil, billionaire investor <strong>Bill Ackman<\/strong> expressed extreme optimism regarding the domestic market. Ackman noted that stocks have moved past a <strong>&quot;stupidly cheap market bottom&quot;<\/strong> and claimed his firm has the potential to scale to the size of a mega private equity firm like Blackstone (<a href=\"\/stock\/BX\">BX<\/a>).<\/p>\n<p>In the automotive sector, Michelin (<a href=\"\/stock\/ML\">ML<\/a>) reported Q1 2026 revenue of <strong>\u20ac6.17 billion<\/strong>, slightly beating analyst estimates of \u20ac6.1 billion. The company maintained its full-year 2026 guidance despite the volatile global backdrop. <em>Investors remain focused on corporate resilience as input costs rise due to the energy spike.<\/em><\/p>\n<h2>Macroeconomic Outlook and Bond Volatility<\/h2>\n<p>The global bond market is experiencing significant stress, with <strong>UK Ten-Year Gilt yields<\/strong> on track for their highest close since 2008. Longer-dated 20- and 30-year yields are reaching levels not seen since 1998, reflecting a global repricing of inflation risks.<\/p>\n<p>In the U.S., the <strong>Atlanta Fed GDPNow<\/strong> estimate for Q1 remains steady at <strong>1.24%<\/strong>. Markets are also looking ahead to the next <strong>Federal Reserve Chair<\/strong>, who is expected to navigate a complex environment of rate cuts paired with balance sheet reduction, while potentially reversing &quot;mission creep&quot; into climate and ESG initiatives.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Global oil prices (Brent and WTI) surged approximately 7% after President Trump rejected an Iranian proposal regarding the 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