Wall Street’s latest volatility and the White House’s escalating rhetoric over the Strait of Hormuz collided again Thursday as President Donald Trump said he was buying time for negotiations with Iran and delaying a threat to strike the Islamic Republic’s energy facilities.
Trump announced the extension after a rocky session on Wall Street and said he was delaying any potential action because talks aimed at ending the conflict are “very well,” despite Iran’s public insistence that it is not negotiating with the White House on a 15-point proposal delivered by Pakistani intermediaries. The administration’s deadline, he said on Fox News Channel’s “The Five,” was extended after Iran requested a shorter grace period.
“They asked for seven (days),” Trump said, according to the appearance shortly after he posted on social media that he would give Iran until April 6 to reopen the strait. He added, “And I said, ‘I’m going to give you 10.’”
The announcement came shortly after Wall Street closed Thursday, on another day of sharp losses tied to concern over whether the United States would carry out its stated red line. The S&P 500 fell 1.7%, the Dow Jones Industrial Average dropped 469 points, or 1%, and the Nasdaq composite slid 2.4%—pushing it more than 10% below its early-year record high.
Thursday’s decision followed what Trump’s team has presented as an evolving set of demands tied to Hormuz, a chokepoint for global oil markets. Trump first threatened to bombard Iranian energy facilities on Saturday and then quickly shifted the timeline, initially giving Tehran 48 hours to open the strait before backing off on Monday and extending the window by five days, after Asian markets reacted.
In his latest comments, Trump also suggested negotiators were reporting developments that affected his willingness to continue the pause. He previously said he had not fully decided whether to extend the window again and said the decision would depend on updates from envoy Steve Witkoff, son-in-law Jared Kushner and Vice President JD Vance about broader talks to end the war.
Trump said he believed Iran was “begging” for a deal, while also urging Iran’s negotiators to “get serious soon, before it’s too late.” Witkoff, speaking to Trump’s Cabinet, said the administration was trying to convince Iran that the situation was an “inflection point with no good alternatives for them other than more death and destruction,” and he told the president that peace was possible and that “Iran is looking for an off-ramp” after the power-plant threat.
The administration’s negotiating posture has been paired with public warnings from Iran. Iran had warned that it would retaliate against vital infrastructure in the region, including desalination facilities, if the United States or Israel hit Iranian power plants, and it has tightened its control over the strait as it seeks what the report described as a “toll booth” approach for tankers.
Alongside the diplomatic and military pressure, Trump and senior officials sought to manage the narrative around the economy. Trump said he expected oil prices to rise more and the stock market to fall more, but he argued the reaction had not been as severe as he anticipated and he attributed market behavior to confidence in the administration’s leadership.
Treasury Secretary Scott Bessent similarly downplayed the need for a broader coalition to protect shipping through Hormuz, telling the Cabinet that the United States has “so much oil” and that it is “not affected” by disruptions. The report noted that even if the United States does not rely on Strait of Hormuz flows directly, global oil prices still influence costs at the pump worldwide; it said the nationwide average price of gas in the U.S. had risen by more than a dollar from a month earlier.
Bessent also said that Iran, by restricting oil and natural gas through the strait, was “trying to take control of the global economy through a chokepoint that we believe does not exist.” The report said that characterization was misleading given the strait’s importance—especially for Asia—and the fact that energy prices have increased since the war with Iran began.
In remarks to the Cabinet, Bessent expressed optimism that shipping traffic would continue and said he was confident that traffic would increase on a daily basis even before the strait is fully secured. The report also described Trump as simultaneously continuing to shift forces to the region, with the Pentagon preparing to deploy at least 1,000 soldiers from the 82nd Airborne Division to support operations against Iran and with thousands of Marines already being moved.
That larger military posture has fueled speculation about whether the United States is preparing for limited actions, and one former defense official, Mick Mulroy, argued that while the U.S. could potentially capture Kharg Island and help secure the strait, diplomacy would remain the “best route out,” saying it works only if both sides are willing to compromise.
Trump also said Thursday that Iran was allowing several Pakistan-flagged tankers through the strait, presenting the development as a hopeful sign for the talks. “Well, I guess we’re dealing with the right people,” Trump said.