There are conflicting statements from the US and Iran; analysts say last Friday’s gains will see a pullback this Monday.

Jinse Finance reported that on April 20, traders are bracing for turbulence at this week's market open as the ongoing standoff around the Strait of Hormuz rekindled uncertainties that Wall Street had been eager to overlook. Last Friday, Trump said a deal with Iran was almost reached, sparking a market rally: the S&P 500 index rose more than 3% for the third consecutive week and is on track for its largest monthly gain since 2020, the US dollar erased all gains made after the outbreak of the conflict, Brent crude oil plummeted, and US bonds rallied. However, over the weekend, Iran once again closed the Strait of Hormuz and threatened not to participate in talks held in Pakistan. Trump threatened that if negotiations fail, he would destroy all of Iran’s power plants and bridges. This turnaround reflects that last week’s rally was largely built on hope rather than concrete solutions. Martin Hennecke, Head of Investment Advisory at St. James's Place, said, "Investors seem to be celebrating too early," and the weekend situation "could lead to a short-term pullback in recent market gains." In early Asian trading on Monday, the US dollar climbed against major currencies, with the Australian dollar registering the largest drop among risk-sensitive currencies. (Golden Ten Data)