Markets are on edge once again after U.S. President Donald Trump sent a new warning to Iran.

In a Truth Social post on April 7, Trump warned that “a whole civilization will die tonight.”

The remarks came hours before his self-imposed 8:00 pm Eastern Time deadline for Iran to reopen the Strait of Hormuz, a critical artery for global oil flows that has been in a chokehold for more than a month.

Trump framed the moment as historic, suggesting that decades of “extortion, corruption, and death” could end, while simultaneously warning of catastrophic consequences if diplomacy fails.

Despite the apocalyptic tone, he left a narrow window for de-escalation, hinting that “something revolutionarily wonderful can happen.”

Related: Wall Street warns TACO traders as Iran begins laying mines

Financial markets reacted swiftly. Ahead of the market bell on Tuesday, futures tied to the Dow Jones Industrial Average dropped 142 points, while S&P 500 and Nasdaq 100 futures fell 0.4% and 0.6%, respectively, signaling a risk-off environment.

After the bell, the Nasdaq composite dropped 0.6%, the S&P 500 opened 0.42% lower, while the Dow Jones Industrial Average began trading 0.3% lower.

Fears of supply disruption due to a blocked Strait of Hormuz continue to influence energy prices. West Texas Intermediate crude surged above $115 per barrel, with Brent crude climbing past $110.

Cryptocurrency markets were not immune to the turbulence. Bitcoin (BTC) slipped 1.2% over 24 hours to trade near $68,557, while Ethereum (ETH) dropped 2.6% to around $2,089. Solana (SOL) and XRP (XRP) posted sharper declines of 3.9% and 2.5%, respectively.

Related: ‘Iran can be taken out in one night’: Trump’s fresh threat erases market gains

This story was originally published by TheStreet on Apr 7, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.