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• Oil prices jump: US President Donald Trump’s address to the nation last night — which offered few details of an exit strategy for the war with Iran — rattled oil traders. Both global and US oil benchmarks surged following his address, and average US gas prices are now at $4.08 a gallon.
• Trump’s address: The president used familiar talking points in his remarks, telling Americans the conflict is “nearing completion.” Trump signaled the US is prepared to intensify its military response and threatened to take Iran “back to the stone ages.”
• Tehran’s response: Iran’s military dismissed Trump’s claim that more than four weeks of attacks have left it weakened. “Expect even more crushing, more extensive and destructive actions from us,” it said.
• On the ground: US-Israeli strikes hit the oldest health medical research facility in Iran, according to an Iranian government official. In northern Israel, authorities said dozens of rockets were fired at the region.
US stock futures sink as Trump rattles markets with lack of clear exit plan
US stock futures dropped Thursday after President Donald Trump pledged to escalate the conflict in the Middle East.
Dow futures fell by 670 points, or 1.4%, in premarket trading. S&P futures dropped 1.6%, and those tied to the tech-heavy Nasdaq 100 declined by 2.1%.
Stocks had rallied earlier this week, posting their best day since May on Tuesday as optimism rose that the United States might make an effort to end the war with Iran.
But the sell-off came after Trump, in an April 1 evening address to the nation, revealed no clear exit strategy and no solution to the effective closure of the Strait of Hormuz, which has choked off one-fifth of the global supply of oil.
Trump said the war would drag on for at least two to three more weeks and even signaled an escalation in the conflict, with the United States potentially targeting Iran’s oil facilities. Already, thousands of US troops have been sent to the region, in potential preparation for a ground war.
The S&P 500 just posted its worst quarterly performance since September 2022.
“Markets will only recover in a true and sustainable way once global energy markets begin to normalize,” Kyle Rodda, senior financial market analyst at Capital.com, said in a note to clients.
Thursday marks the last trading day of the week, with markets closed Friday in observance of the Good Friday holiday.
US-Israeli bombing destroys oldest medical research center in Iran, official says
US-Israeli strikes hit one of the leading health research institutions in Iran, a government official said Thursday, as relief agencies warned against mass attacks on medical facilities in the region.
The Pasteur Institute of Iran, one of the “century-old pillars” of global health in the region, was struck in a “direct assault on international health security,” Hossein Kermanpour, head of the information center at the Iranian Ministry of Health, posted on X.
Established in 1920, the institute is the first and oldest public health center in Iran – where staffers pioneered vaccine development and research on the prevention of infectious diseases.
CNN has reached out to CENTCOM and the Israeli military for comment.
More than 30 days of US-Israeli bombing on Iran and retaliatory Iranian strikes on Israel has depleted medical systems and laid waste to entire neighborhoods in Iran and Lebanon, killing thousands of people across the Middle East.
At least 316 health care and emergency centers have been damaged in Iran since February 28, the Iranian Red Crescent reported on April 1. On average, health care systems in Iran, Lebanon and Israel have come under attack about once every six hours, the NGO, Save the Children said on March 31.
Last month, the World Health Organization (WHO) reiterated that health workers, patients and health facilities “must always be protected under international humanitarian law.”
CNN’s Eugenia Yosef contributed reporting.
Why a quick American exit from the Iran war isn’t in Tehran’s interest
Iran wants this war to stop, but it cannot afford for it not to end without a final settlement.
Iranian leaders have repeatedly said the US-Israeli war must end on their terms and that a mere ceasefire won’t suffice. The Islamic Republic appears to have inflicted enough pain to help deter a regime change or ground invasion so far, but a hasty and unilateral exit by US President Donald Trump without an agreed end to the war would leave all sides with unfinished business.
Here’s why: Officials in Tehran want to avoid a repeat of the war and believe a ceasefire will amount to little more than a pause, allowing the US and Israel to regroup and strike again. That’s why guarantees against a repeat of the conflict were among the key demands Iran set out for ending the war. Others included a full cessation of both US and Israeli strikes – including on Iranian proxies – as well as reparations, sanctions relief and recognition of Iran’s authority over the Strait of Hormuz. There’s no guarantee a US exit will meet any of those conditions.
Crucially, Iran needs Israel to be restrained by Washington. It is likely concerned that Israel will seek to retain broad operational freedom over Iran’s skies, as it did after agreeing to ceasefires in both Gaza and Lebanon, meaning an American exit may not guarantee an end to Israel’s own fight with Iran, or Hezbollah in Lebanon.
That’s why Iran’s priority after a potential US exit would be to pull Washington back to the negotiating table – potentially by maintaining pressure on the global economy and keeping oil prices from sliding.
On the other hand, a US exit could entrench Iran’s emerging “tollbooth” system at the Strait of Hormuz, where the Islamic Republic vets vessels and charges millions for passage.
Virtual summit aimed at reopening Strait of Hormuz begins
A virtual summit on the Strait of Hormuz crisis — hosted by the UK and joined by representatives from over 40 countries — is beginning, with Britain’s Foreign Secretary Yvette Cooper condemning “Iranian recklessness” as she delivered opening remarks.
UK Prime Minister Keir Starmer announced the meeting yesterday, initially saying that representatives from over 35 countries would convene to assess the diplomatic and political options to reopen the key waterway, which has been throttled by Tehran amid a US-Israeli war with the country.
The US is not among the countries in attendance at the meeting.
Cooper spoke of Iran’s recklessness “towards countries that were never involved in this conflict,” in actions that are “hitting our global economic security.”
Alongside today’s discussions, Cooper said that military planners will also be convened to “look at how we marshal our collective defensive military.”
Strait of Hormuz closure has created "food security timebomb," aid organization warns
The International Rescue Committee (IRC) warned that the continued closure of the Strait of Hormuz has created a ticking “food security timebomb” that could cause a sharp rise in world hunger by June.
The ongoing disruption to the key waterway, which carries around 20% of the world’s oil consumption, due to the US-Israeli war with Iran threatens not only global energy supplies but also impacts shipping lanes that carry medicine and food into crisis zones and other humanitarian missions, the IRC said.
According to the organization, the current crisis looks set to surpass the global food shock in 2022 caused by Russia’s war in Ukraine, which saw the disruption of wheat exports via the Black Sea.
World leaders and humanitarian groups are now faced with with a quickly narrowing window to prevent a sharp rise in world hunger by June 2026, the IRC warned.
Macron criticizes Trump, saying call to unblock the Strait of Hormuz is "unrealistic"
French President Emmanuel Macron has rejected Donald Trump’s call for other countries to use military force to unblock the Strait of Hormuz, calling the suggestion “unrealistic.”
In a televised address, Trump - who has been railing at allies for not supporting him over the Iran war - urged other nations to “go to the Strait and just take it.”
But in some of his strongest criticisms yet of the US president, Macron said the “idea of forcibly liberating the Strait of Hormuz through a military operation,” was “unrealistic.”
Macron was speaking Thursday to journalists from South Korea where he is on an official visit.
He added that safe passage of commercial shipping through the strait would require a ceasefire and a reopening of negotiations with Iran. He said that a military force could accompany such shipping as part of a reassurance mission.
On the broader campaign, Macron reiterated that, despite Trump’s request for support, France would not participate in the conflict against Iran, which was a US-Israeli operation.
On the campaign’s prospects, his outlook was scathing.
Macron said that without follow-up inspections by outside inspectors, the ongoing military campaign was “not serious.”
“You still have, and will continue to have tomorrow in Iran, people with the necessary expertise, and you still have hidden sites, etc. Therefore, a targeted military action, even lasting only a few weeks, isn’t enough to resolve the nuclear issue in the long term.”
Iran executes man over January protests, local media says
Iran has executed a man convicted of participating in an attack on a military site during protests that took place in January, the semi-official news agency Tasnim reported Thursday, citing the country’s judiciary.
The man “tried to enter a military center and destroy it to seize the weapons there,” Tasnim said, adding that the man – named Amirhossein Hatami – was hanged this morning.
Hatami had admitted to his charges during interrogation, Tasnim said.
Reporting from Iranian state media suggests that at least 9 executions have been carried out over the past month. However, this figure is likely a conservative estimate, as many executions are not publicly disclosed and transparency is limited, especially during periods of unrest and conflict.
Several of these cases appear linked to January’s protests or other security charges, with human rights organizations warning that dozens more may be at risk of execution.
Hatami was among a group of protesters that Amnesty International said this week were at risk of imminent execution, after four men were “arbitrarily executed in secret within 24 hours.”
Oil traders wanted two things from Trump and got neither
The oil market wanted two things from President Donald Trump’s speech Wednesday night: A timeframe for the war’s end and a plan for reopening the Strait of Hormuz.
It got neither.
Trump said in a primetime speech from the White House that the war with Iran would drag on for at least two to three more weeks, far exceeding his initial indication of the war’s potential duration. He offered no exit plan and said the conflict could escalate significantly in the coming weeks, with the United States potentially targeting Iran’s oil facilities.
Trump also renewed his plea to America’s allies who rely on Middle Eastern oil to “build up some delayed courage” and work to reopen the Strait of Hormuz, currently in Iran’s control. Trump argued the US military had decimated Iran’s ability to assault tankers in the area, even though attacks continue and the flow of oil through the pinch point has slowed to a trickle.
The president also, paradoxically, said the strait would reopen without any assistance, because Iran would need it open to sell its oil – even though it is currently allowing its own tankers through, and the United States removed sanctions from some Iranian oil aboard tankers.
The oil market was not buying any of what Trump said. Global oil prices surged nearly 8% today, nearing $110 a barrel. The global crude benchmark is on pace for the largest single-day increase in three weeks.
US gas prices rise to $4.08 a gallon
The average price of a gallon of US regular gas continued its steady climb, reaching $4.08 in the latest reading from AAA, a 2-cent increase from the day before.
Gas prices are now up 37% since the start of the war with Iran.
Earlier this week the average price crossed the $4 a gallon mark for the first time since 2022. Prices have increased all but three days since March 1, and those three declines were by an almost imperceptible fraction of a penny that left prices unchanged each day when rounded to the nearest cent.
The $1.08 rise in gas prices since March 2 is a steeper one-month climb than any period following Hurricane Katrina in 2005 or the sanctions placed on Russia after its invasion of Ukraine in 2022. The latter spike took gas prices to a record $5.02.
More increases could be on the way. Oil futures were up again in early trading Thursday after President Donald Trump said US forces would hit Iran “extremely hard over the next two to three weeks,” even as he sought to assure Americans that the war is nearing an end and that gas prices would quickly fall once it does.
But even if the fighting stopped, that wouldn’t ensure that oil and gas prices would fall as Trump was predicting.
Jet fuel and diesel shortages coming to Europe this month or by early May, IEA head says
As the war in the Middle East has squeezed supplies of jet fuel and diesel in Asia, Europe is next to be hit by shortages, according to the head of the International Energy Agency.
He said that in March, global ports were still receiving oil and natural gas cargoes that had left the Middle East before the United States and Israel unleashed the war in the region. “But in April, there is nothing,” he added.
Birol’s prediction echoes comments by an oil company CEO and Germany’s economic minister last week, warning that energy shortages would hit Europe starting this month if the Iran conflict did not end.
Global prices for jet fuel are now more than double their level in February, based on the latest data from the International Air Transport Association, covering the week ending March 27.
Airlines have responded by increasing prices, through surcharges, and by cutting flights.
Four ways a hasty Trump exit may not end the war
US President Donald Trump says the “hard part” in the Iran war is over. But Iran has insisted that it will choose when the war ends and is showing no signs of giving up until the US agrees to its demands.
Here’s why the hard part of the war may be far from over:
An emboldened Iran still holds nuclear material: Trump declared his goal of preventing Iran from developing a nuclear weapon “has been attained,” but more than 400 kilograms of highly enriched uranium that could be used to make a bomb are unaccounted for. Experts have reason to believe that Tehran is now more likely to seek a bomb.
No end to economic chaos: Exiting the war without a formal agreement to reopen the Strait of Hormuz would hand Iran a win in imposing its sovereignty over it, giving it immense leverage over the world economy. Iran’s reported imposition of tolls of up to $2 million per ship risks becoming the new norm.
Gulf security left unaddressed: A quick exit could leave Iran’s Gulf Arab neighbors exposed to repeat attacks and allow Tehran to dictate the terms under which they can export oil. A hasty US exit that leaves Gulf states to fend for themselves would likely be seen as a betrayal of Trump’s pledge to “protect” them.
Israel may continue strikes: An American exit that leaves the Iranian regime intact could leave Israel with what it sees as unfinished business. But even if Israel halts its strikes on Iran, there’s no guarantee Tehran will reciprocate. Iran is likely to seek assurances that it will not be attacked again. A US exit is also unlikely to address Israel’s war in Lebanon.
Read the full analysis here.
Trump’s signals “desperation” as Iran gains upper hand, former Pentagon adviser says
Iran may gain the upper hand in negotiations with the US, as President Donald Trump’s aggressive rhetoric signals desperation to end the conflict, a former Pentagon adviser told CNN’s Danny Freeman.
“What the Iranian regime is getting from President Trump’s speeches is that he is actually desperate to make a deal,” said former Pentagon adviser Jasmine El-Gamal. “They know that if they continue to impose these costs on the US, Gulf allies, global energy markets, they have a better chance of getting to the negotiating table on their terms.”
Her comments follow threats from Trump in his speech Wednesday to “bring them (Iran) back to the stone ages.”
Meanwhile, global energy costs continue to surge, as US gas prices have climbed above $4 a gallon for the first time since 2022, largely driven by disruptions in the Strait of Hormuz, a critical artery for trade.
El-Gamal said the president’s shifting tone, alternating between calls for negotiations and threats of escalation is undermining progress in negotiations to end the confict.
“We’re not closer than we were last week because he (Trump) keeps doing the same thing, vacillate between these two positions. We want a deal but we’re also going to bomb you to the stone age if you don’t give it to us. That’s not the way you bring an adversary to the negotiating table.”
China warns “illegal” US-Israeli war on Iran is “root cause” of choked Strait of Hormuz
Beijing cautioned that “illegal military action” by US and Israeli forces in Iran is the “root cause” of stalled shipping lanes along the key Strait of Hormuz on Thursday – urging warring parties to negotiate “ceasing hostilities.”
“The root cause of the obstruction of navigation in the Strait of Hormuz is the illegal military action by the United States and Israel against Iran,” China’s Ministry of Foreign Affairs spokesperson, Mao Ning, told reporters in Beijing.
The US-Israeli campaign on Tehran, retaliatory Iranian strikes and a sweeping Israeli offensive in Lebanon, have killed hundreds of people and exacerbated regional violence. The near Iranian blockade on the Strait – where vessels transport about one fifth of global oil and natural gas supplies – has further pushed up oil prices and prompted consternation among world leaders who refuse to get directly involved in the military campaign.
Mao urged stakeholders to “work together to de-escalate the situation and prevent regional instability from having a greater impact on global economic and energy security.”
However, US President Donald Trump dealt another blow to hopes of ending the fighting in an address late Tuesday. Not only did Trump avoid explaining how the White House would try and negotiate a ceasefire, he threatened to bomb Iran “back to the stone ages.”
Trump address offers little new information and markets drop: Catch up
Tehran has threatened its enemies after US President Donald Trump’s national address on Wednesday evening, which revealed little new information or clarity on when the war might end.
Following Trump’s speech, oil prices spiked and stocks slipped. Meanwhile strikes in the region continue.
Here’s what you need to know about Trump’s address:
- Touting progress: He touted the military progress that the US has made over the last several weeks, describing the weeks of bombing as “victories like few people have ever seen before.” And he pleaded for patience, calling the war an “investment” in Americans’ future.
- No clarity: Yet he did not offer any new answer for the main question on many US citizens’ minds: When exactly the war will be over.
- Intensified response: Trump did however signal that the US is prepared to intensify its military response against Iran over the “next two to three weeks,” saying we are going to “hit them extremely hard.”
- Strait of Hormuz: The US president used his Wednesday address to play down the US’ reliance on the Strait of Hormuz, a critical oil and gas shipping route.
What has the reaction been?
- Oil prices spike: The price of oil climbed higher in the minutes following his speech; the price of brent crude, the global oil benchmark, was spiking by more than 4% to over $105 per barrel after Trump vowed to continue the conflict for another few weeks. In early trade on Thursday, brent crude rose 6.6% to near $108 a barrel.
- Stock market: The US stock market also signaled discontent with the speech in off-hours trading, with the Dow Jones and S&P 500 futures both sinking while overnight in Europe, major indexes were overwhelmingly in the red. Market sentiment “deteriorated overnight,” Deutsche Bank analysts wrote in a note.
- Republican praise: Trump’s speech generated praise from members of his administration and allies on Capitol Hill, with Sen. Lindsey Graham writing on X, “His leadership, backed by the courage of our men and women in uniform, is why we sleep safer at night.”
- “No clear plan:” Democrats on Capitol Hill criticized Trump’s remarks, including Sen. Chris Coons, who wrote on X, “No clear plan. Rambling, unmoored, unserious.”
Britain to host virtual Strait of Hormuz summit today
Britain will host a virtual summit today on the Strait of Hormuz, which will see representatives from 35 countries convene to assess the diplomatic and political options to reopen the critical waterway.
The meeting comes as US President Donald Trump heaps criticism on European allies, calling on them “to start learning how to fight for yourself.” In his 20-minute address to the nation on Wednesday evening, Trump downplayed the US’ reliance on the Strait of Hormuz, and the global impact of its effective closure.
British Foreign Secretary Yvette Cooper “will host a meeting that brings those nations together for the first time, where we will assess all viable diplomatic and political measures that we can take to restore freedom of navigation,” UK Prime Minister Keir Starmer announced Wednesday.
A British official told CNN the UK “continues to work with the US on this initiative,” which also brings together other key partners, including the Gulf Cooperation Council.
Starmer said that military planners would also be convened to “look at how we can marshal our capabilities and make the strait accessible and safe after the fighting has stopped.”
But the British leader cautioned, “this will not be easy.”
Oil prices jump and stocks fall on fresh escalation fears
Oil prices climbed and stocks slipped today, after inflammatory remarks by US President Donald Trump dashed investors’ hopes of a prompt end to the war.
Brent crude, the global oil benchmark, rose 6.6% in early trade to near $108 a barrel. WTI, the US benchmark, climbed 6.3% to almost $106.4 a barrel.
Stock markets fell, after gains earlier in the week. South Korea’s Kospi led declines in Asia, closing 4.5% lower. In Europe, major indexes were overwhelmingly in the red and US futures also pointed to a lower open.
Market sentiment “deteriorated overnight,” following the address by Trump, which delivered no clarity “on potential timelines or conditions for ending hostilities against Iran,” Deutsche Bank analysts wrote in a note. “There was no signal of the US seeking an imminent offramp out of the war,” they added.
Two wounded after rocket strikes on northern Israel
Dozens of rockets were fired at several locations in northern Israel, authorities said, wounding people and causing damage.
Paramedics are treating an 85-year-old man and a 34-year-old man with mild shrapnel injuries, according to a spokesperson for Magen David Adom, Israel’s emergency service.
Firefighters are responding to a gas leak in the city of Kiryat Shmona, where two gas cylinders were hit by shrapnel. Fire crews shut off the energy sources to prevent a fire from igniting, according to the Fire and Rescue Department covering northern Israel.
Search and rescue personnel are also responding to several sites in Galilee where impacts were reported, according to the Israel Defense Forces.
South Korea president pushes special $17 billion budget to mitigate energy shocks
South Korea’s president has urged the country’s parliament to pass a $17.3 billion supplementary budget to fend off “the worst energy security threat,” as the country is buffeted by a crisis thousands of miles away.
South Korea is particularly hard-hit by the energy crunch in the Middle East, a region from which 70% of its oil imported.
“Even if the war ends tomorrow, it will take a considerable period of time for the destroyed energy infrastructure facilities in the Middle East to be restored and supplies to run as smoothly as before,” Lee Jae Myung told parliament in a televised speech Thursday.
“This situation is considered the worst energy security threat and is shocking the global economy. The uncertainty not knowing when this will end is having a significant negative impact on the economy.”
The South Korean government has put a cap on fuel prices and restricted the export of naphtha, a petroleum by-product used in plastics manufacturing, while mulling driving curbs as oil prices soar.
Lee said that the $17.3 billion budget will be funded by the country’s strong stock market and semiconductor industry along with government funds.
Tehran threatens foes with "lasting regret, and ultimate surrender," after Trump speech
Iran’s military threatened more destruction and touted its might, in a response to Donald Trump’s national address Wednesday evening, in which the US president said the conflict is “nearing completion” and threatened to take Iran “back to the stone ages.”
The war will continue until the US and Israel face “humiliation, disgrace, lasting regret, and ultimate surrender,” the spokesperson for the Iranian military headquarters said in the statement, reported by Iranian state media IRIB.
“Following the powerful and unimaginable blows you have already received, expect even more crushing, more extensive and destructive actions from us,” the statement said.
Iran also dismissed Trump’s claims that its military has been severely weakened, saying the US knows “nothing about our vast and strategic capabilities.”
US embassy warns Iran-aligned militias could attack Baghdad
The US embassy in Iraq has warned that Iran-aligned militant groups may conduct attacks in central Baghdad in the next 24-48 hours, again urging Americans to leave the country.
Iran and its proxies have already attacked US citizens and US-associated targets in neighboring Iraq, the embassy said in a post to X on Thursday.
“They may intend to target US citizens, businesses, universities, diplomatic facilities, energy infrastructure, hotels, airports, and other locations perceived to be associated with the United States, as well as Iraqi institutions and civilian targets. Terrorist militias have targeted Americans for kidnapping,” the post said. “US citizens should leave Iraq now.”
American journalist Shelly Kittleson was kidnapped in the capital on Tuesday, her media outlet said. The US government is currently working to secure her release.
The US embassy in Iraq has repeatedly warned US citizens to leave the country since the conflict with Iran began in late February.
