U.S. stocks dropped on Tuesday as investors feared talks between the Trump administration and Iran were at risk of breaking down before the end of a two-week ceasefire.
The Dow Jones Industrial Average was down more than 200 points, or about 0.5%, in mid-afternoon trading, and other major indexes also fell into negative territory.
Vice President J.D. Vance has not left the Washington area for talks in Pakistan, as had been expected, as the U.S. received mixed signals from Iran about whether it is willing to negotiate.
The price of Brent crude oil, an international benchmark, jumped 3% on Tuesday and was trading at about $98 per barrel.
The U.S. and Israel launched a joint military operation against Iran on Feb. 28, killing top Tehran officials and decimating Iranian military infrastructure.
Iran retaliated by striking targets in Gulf nations and clamping down on oil traffic in the Strait of Hormuz, a vital waterway.
Both sides agreed to a two-week pause in fighting on April 7. The ceasefire will expire by Wednesday, raising the risk of more violence if the parties cannot reach a last-minute agreement.
President Trump is demanding that Iran give up any attempt to secure a nuclear weapon.
The prospects for a deal remain unclear, given the tough talk between both sides in the lead-up to another round of negotiations.
“We do not accept negotiations under the shadow of threats, and in the past two weeks, we have prepared to reveal new cards on the battlefield,” Iranian Parliament Speaker Mohammed Bagher Ghalibaf posted Tuesday on X.
Mr. Trump said he would resume fighting if Iran does not make a good deal.
“We’re ready to go,” Mr. Trump told CNBC.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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