Trump Iran military action threat

What happened: President Trump suspended planned attacks on Iranian infrastructure for two weeks, contingent on Iran opening the Strait of Hormuz. He threatened to "obliterate" Iran's power plants and bridges if it didn't comply by Tuesday. Oil prices surged, briefly topping $114 a barrel, before retreating. Defense contractor Lockheed Martin (LMT) and liquefied natural gas exporter Venture Global (VG) saw increased investor interest due to potential military activity.

Market impact: The energy sector, particularly oil and gas companies, experienced volatility due to geopolitical risk. Defense stocks like LMT benefited from investor expectations of increased military spending. Meanwhile, oil prices, a key input cost for many industries, posed headwinds for downstream sectors like transportation and manufacturing.

What to watch next: The next two weeks will be crucial, with the Tuesday deadline looming. Investors should monitor Iran's response and Trump's actions. Additionally, watch for any changes in U.S. visa policies targeting Iranian elites, as hinted by Trump and Senator Rubio. Lastly, keep an eye on oil prices, which could remain volatile depending on geopolitical developments.