Nasdaq set to reverse as Iran says 'restraint is ended' ahead of Trump deadline

• Nasdaq futures fell 0.5%, S&P 500 futures down 0.4%, and Dow futures down 0.3%, reversing Monday's gains when major indices rose 0.4-0.5%
• WTI crude oil prices climbed from below $110 per barrel on Friday to around $115 as Iran rejected temporary ceasefire terms and Israel conducted strikes on Iranian infrastructure
• Trump's deadline threatens escalation to attacks on Iranian civilian infrastructure if no agreement is reached by 8pm Eastern Time

Market Summary: US Futures Drop on Iran Tensions Ahead of Trump Deadline

Market Movement:

US stock futures pointed lower Tuesday morning, reversing Monday's gains. Dow Jones futures declined 0.3%, while S&P 500 and Nasdaq futures fell 0.4% and 0.5% respectively. This contrasts with Monday's close when the Nasdaq rose 0.5% to 21,996 points, the S&P 500 gained 0.4% to 6,611 points, and the Dow added 0.4% to finish at 46,669.

Geopolitical Tensions:

Markets are reacting to escalating US-Iran conflict as President Trump set an 8pm ET deadline for Iran to agree to terms, threatening attacks on civilian infrastructure. Iranian sources indicated Tehran rejected a temporary ceasefire and set strict conditions for negotiations, including an immediate halt to strikes. The Islamic Revolutionary Guard Corps stated "restraint is ended." Israel reportedly conducted strikes on Iranian infrastructure, including bridges and transport links.

Commodity Impact:

Oil prices surged in response to Middle East tensions, with WTI crude climbing from below $110 per barrel Friday to approximately $115 ahead of Tuesday's New York market open.

Regional Markets:

European markets showed mixed performance following a four-day Easter break, with London's FTSE trading near flat.

Analyst Perspective:

Capital.com analyst Daniel Hathorn characterized the situation as a "near-term binary outcome" scenario, with markets facing either escalation through direct strikes or last-minute de-escalation that could trigger sharp reversals in risk assets. The uncertainty is maintaining market volatility and indecisiveness as investors "trade against another countdown clock."