Oil prices break $120!!!

Trump issues a final ultimatum to Iran—how's your wallet doing?

Today's market can be summed up in one word: chaos!
Oil prices soared to $120, tensions between the US and Iran are escalating, tech stocks are trembling, and even Bitcoin is taking a hit.
What exactly happened in the market today, and what should we do with our money?
---🔥 Headline: Trump issues a "final ultimatum" to Iran
First, the most explosive news: Trump demands Iran reopen the Strait of Hormuz by 8 PM Eastern Time tonight, or else he will carry out airstrikes on Iran’s power plants and bridges. Iran isn’t backing down either, directly warning: If you dare to attack me, I will escalate strikes on Gulf energy facilities!
Why is this so serious?
Because the Strait of Hormuz is the "lifeline" of global oil transportation, with 21 million barrels of crude oil shipped through it daily, accounting for 20% of global oil trade! If blocked, oil prices will inevitably skyrocket, and global inflation pressures will spike instantly.
Market reaction:
• Brent Crude: surged directly above **$120**
• US stock futures: fell before Tuesday’s open
• S&P 500: -0.33%, Nasdaq also declined
• Hang Seng Index: -0.70%

Once geopolitical risks erupt, the market will become as jittery as a frightened bird. The key now is whether Iran will compromise by 8 PM tonight, and whether Trump will really take action. If the conflict escalates, oil prices will continue to rise, and inflation expectations will re-emerge.

📊 Market Snapshot: Data Speaks
• **S&P 500**: 6,590 points (-0.33%)
• **Hang Seng Index**: approximately 25,117 points (-0.70%)
• **10-year US Treasury yield**: 4.35%
• **Gold**: $4,552 per ounce (risk aversion rising)
• **Crude Oil (Brent)**: above $120
• **Bitcoin**: impacted by oil prices, with an 85% correlation to the Nasdaq, falling along with it.

Gold is up, oil is up, stocks are down—that’s classic risk aversion. When market uncertainty increases, funds tend to flow into safe assets like gold and US Treasuries. If you hold gold or gold ETFs, congratulations, today’s your day to make money.

---🔍 Other Things to Watch
1️⃣ The Federal Reserve kept interest rates at 3.75% in March, maintaining a dovish stance, but soaring oil prices and resilient inflation data have lowered expectations of rate cuts in 2026 to at most once. In other words, don’t expect the Fed to cut rates significantly to rescue the market.
2️⃣ The key inflation data (CPI/PCE) will be released this Friday, which will determine the future rate path and market direction. If inflation exceeds expectations, the Fed may delay rate cuts further, putting more pressure on stocks.

The market now feels like walking a tightrope—geopolitical conflicts pushing up oil and inflation on one side, and the Fed refusing to cut rates on the other. The inflation data this Friday will be a crucial indicator, so stay tuned!