5 things to know: Oil surges, stocks fall as Trump threatens Iran

Stock futures are slipping while oil prices climb as markets brace for President Trump’s high-stakes Tuesday night deadline for Iran to reopen the Strait of Hormuz. Despite the geopolitical tension, a boost in health insurance stocks and news of a potential $2 trillion SpaceX IPO are helping to offset broader losses.

Stocks are pointing lower Tuesday morning, News.Az reports, citing Investopedia.

Investors remain cautious ahead of President Donald Trump's latest deadline for Iran, which comes tonight, when the U.S. could attack power plants and bridges if the Strait of Hormuz isn't opened; Health-insurance stocks are surging after the Centers for Medicare and Medicaid Services finalized a better-than-feared planned payment rate increase for 2027; Levi Strauss is among the first big companies set to post earnings with its results due after the closing bell, followed by Delta Air Lines tomorrow; SpaceX is reportedly looking to host events with investors and analysts ahead of a potential June IPO that could value the company as high as $2 trillion, 

Here's what you need to know today:

1. Stocks and Oil React to Iran Deadline Stock futures are trending lower as investors brace for the expiration of President Trump's Tuesday night deadline for Iran to reopen the Strait of Hormuz. Dow and S&P 500 futures fell 0.4%, while Nasdaq futures dropped 0.6%. Meanwhile, crude oil surged 2% to $114.50 a barrel amid the escalating tension, and gold remains steady just under $4,700 an ounce.

2. Trump’s Ultimatum and Iran’s Defiance The geopolitical situation reached a boiling point after Trump threatened to attack Iran’s infrastructure (power plants and bridges) if the Strait is not reopened tonight. Iran has reportedly rejected a 45-day ceasefire proposal, demanding a permanent end to the conflict. Furthermore, Iran’s Revolutionary Guard warned it would cut off oil and gas supplies to the US and its allies for "years" if Trump follows through on his threats.

3. Medicare Proposal Boosts Insurers In a rare bright spot for the market, health insurance stocks like UnitedHealth, Humana, and CVS are surging between 6% and 10% in premarket trading. This follows a CMS announcement of a 2.48% increase in Medicare Advantage payments for 2027—a significant jump compared to the much lower rates previously expected, which had recently dragged the sector down.

4. Earnings Season Kicks Off The first-quarter earnings season officially begins today, with Levi Strauss reporting after the bell. Delta Air Lines and Constellation Brands follow tomorrow, with major banks slated for next week. Analysts are generally optimistic, expecting double-digit growth, though investors are wary of how rising fuel costs tied to the war in Iran might impact the bottom line for airlines and logistics companies.

5. SpaceX Targets Massive June IPO Elon Musk’s SpaceX is moving toward a historic public debut. Following a confidential filing, the company is reportedly targeting June for its IPO. Analysts suggest the valuation could reach a staggering $2 trillion, potentially raising up to $75 billion. This would position SpaceX as more valuable than tech giants like Meta or Musk’s own Tesla.

News.Az 

By Leyla Şirinova