U.S. stocks declined during Thursday's midday trading, with the Dow Jones Industrial Average falling by 200 points. Traders continued to monitor the latest developments in the Middle East after conflicting signals emerged from the U.S. and Iran regarding peace negotiations. Iran formally responded to a 15-point ceasefire proposal from the U.S., stating that it is certain America's claimed pursuit of negotiations is merely a third deceptive plan.
The Dow dropped 199.14 points, or 0.43%, to 46,230.35. The Nasdaq Composite fell 242.75 points, or 1.11%, to 21,687.07. The S&P 500 declined 52.39 points, or 0.79%, to 6,539.51.
Rising crude oil prices on Thursday added pressure to the stock market. Brent crude futures increased by 3.8% to $106.07 per barrel. West Texas Intermediate crude futures rose 3.5% to $93.45 per barrel.
The U.S. President warned Iran via his social media platform Truth Social on Thursday, urging Tehran to "get serious" quickly regarding the peace agreement with Washington or face severe consequences.
The President stated on Truth Social that Iran "better get serious fast, before it's too late, because once the moment passes, there is no turning back, and the situation will not look good."
He also described Iranian negotiators as "very different" and "strange," claiming they have been "begging" the U.S. for a deal to end the war, which has now lasted for four weeks.
According to three Israeli cabinet sources familiar with the plan, the 15-point proposal delivered via Pakistan on Wednesday demands the removal of Iran's stockpile of highly enriched uranium, a halt to uranium enrichment activities, restrictions on its ballistic missile program, and the cessation of financial support to regional allies.
The conflict has nearly halted shipping through the Strait of Hormuz, which typically handles about one-fifth of the world's crude oil and liquefied natural gas supplies. The International Energy Agency described this as the most severe oil supply disruption event in history.
Iran formally responded to the U.S. ceasefire proposal, calling the negotiations nothing more than a third deception.
Iran's semi-official Tasnim News Agency, citing informed sources, reported that the government delivered a formal response to the U.S. 15-point ceasefire proposal through intermediaries overnight.
Iran's demands include: 1. Cessation of aggression and assassination activities. 2. Creation of specific conditions to ensure the war does not recur. 3. Guarantees for compensation and war reparations. 4. An end to the war on all fronts and across all resistance groups in the entire region. 5. The exercise of sovereignty over the Strait of Hormuz is and will remain Iran's natural and legitimate right, requiring guarantees and recognition from the international community.
Iran stated it is certain that the U.S. claim of seeking negotiations is merely a third deceptive plan. Tehran is now awaiting a response from the United States.
Meanwhile, Gulf nations issued a joint statement on Thursday condemning "criminal" attacks by Iran on their energy infrastructure. The statement also indicated they are prepared to act in self-defense going forward.
The joint statement read, "We value our brotherly relations with the Republic of Iraq, while calling on the Iraqi government to take necessary measures to immediately halt attacks targeting neighboring countries."
Despite the conflicting signals from the U.S. and Iran regarding peace talks, U.S. stocks had recorded gains in the previous trading session, with major indexes on track for weekly advances.
Tobin Marcus, Head of U.S. Policy and Politics at Wolfe Research, suggested that recent market movements indicate investors are betting that Iran may be the party that is "lying."
He wrote in a report, "The market appears to be concluding that Iran's negative public statements may be a smokescreen for a more cooperative private stance. We are less certain, and with the five-day negotiation deadline set by the President, this ambiguity is unlikely to last long."
On the economic data front Thursday, the number of Americans applying for unemployment benefits changed little last week, indicating that layoffs remain low despite new economic challenges.
Data released by the Labor Department on Thursday showed that initial jobless claims increased by 5,000 to 210,000 for the week ending March 21. The median estimate from a survey of economists was 210,000 initial claims. Continuing claims fell to 1.82 million for the week ending March 14, hitting the lowest level in nearly two years.
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