Report says Trump is willing to call a truce if the strait is closed! Oil prices turned lower, Nasdaq futures turned 1% higher, and Asia-Pacific stock markets rose in a V-shape

# Long Yue

Source: Wall Street CN

An Iranian attack on a Kuwaiti oil tanker briefly sent international oil prices surging more than 3%, with WTI crude breaking above $106. Media reports later emerged that Trump said he was willing to end the war even if the Strait of Hormuz remains closed. Oil prices reversed lower, Nasdaq futures turned positive by 1%, and Asia-Pacific stocks staged a V-shaped rebound. The Nikkei 225 turned higher after falling more than 2% earlier.

Trump’s latest comments once again triggered a sharp market reversal.

On Tuesday, March 31, according to CCTV News, Trump told aides he was willing to end the war without the Strait of Hormuz being reopened. U.S. stock futures subsequently turned higher, with Nasdaq 100 futures rapidly rising 1%. International oil prices pulled back sharply in short order, with both Brent and WTI crude futures falling more than 1%.

Earlier, Kuwait Petroleum Corporation confirmed that its fully loaded oil tanker *Al-Salmi* was attacked by Iran at Dubai Port in the United Arab Emirates, sustaining hull damage and catching fire, with a potential oil spill. Spurred by the news, WTI crude futures surged as much as 3.7% to $106.70 per barrel.

Asia-Pacific stocks experienced a V-shaped rebound. At the opening, the MSCI Asia Pacific Index erased all its year-to-date gains, the Nikkei 225 fell 2.5%, and South Korea’s KOSPI dropped 4%. The Nikkei 225 later turned higher after falling more than 2% earlier. The MSCI Asia Pacific Index erased a 1.3% loss to trade near flat. Separately, Federal Reserve Chair Jerome Powell downplayed short-term inflation risks from rising energy prices, helping stabilize U.S. Treasury yields.

### Oil Prices Reverse Lower; Gold and Silver Trade in Narrow Range

Following media reports of Trump’s comments, international oil prices pulled back sharply, with both Brent and WTI crude futures falling more than 1%.

Gold and silver edged slightly lower.

### Stocks Stage V-Shaped Reversal

Early on Tuesday, the MSCI Asia Pacific Index fell 1% during the session, marking its fourth consecutive day of losses and erasing all gains accumulated since the start of 2026. The index has slumped 13% so far this month, its worst monthly performance since October 2008.

In detail, Japan’s Nikkei 225 plummeted 2.5%, with the Topix index falling 1.5%. South Korea’s KOSPI crashed 4%, sending the Korean won to its lowest level against the U.S. dollar since March 2009.

The MSCI Asia Pacific Index later erased a 1.3% loss to trade near flat. The Nikkei 225 turned higher after falling more than 2% earlier.

S&P 500 futures briefly fell 0.3%, while the Nasdaq 100 has now fallen 12% from its all-time high reached in October.

Following Trump’s comments, U.S. stock futures rallied, with Nasdaq 100 futures rising 1%.

Chris Senyek of Wolfe Research stated: “The market continues to be driven by headlines, with the Trump administration sending mixed signals about both de-escalation and escalation in the Iran conflict. As such, we maintain a defensive positioning.”

### Fed Downplays Short-Term Inflation Risks

Despite soaring oil prices reigniting inflation concerns, Fed Chair Powell sought to calm markets in his remarks on Monday. Powell said long-term inflation expectations appear well-anchored, and the near-term inflationary impact from rising energy prices is limited.

Powell noted that inflation expectations are “well-anchored beyond the near term,” adding that policymakers may need to address the conflict’s effects eventually, but not yet. His comments led traders to scale back bets on interest rate hikes, helping U.S. Treasury yields stabilize.

Krishna Guha of Evercore analyzed: “Powell’s calm tone, combined with the market’s belated focus on growth risks from persistently high oil prices, is helping drive a shift in rate pricing. The odds of one or more rate cuts are now far higher than those of hikes.”

### Institutional Views and Market Moves

Against the backdrop of extreme market volatility, institutional investor behavior is closely watched. According to Bloomberg, Goldman Sachs’ trading desk reported that hedge funds are showing signs of capitulation, with momentum fading among systematic investors. Goldman Sachs expects trend-following investors (CTAs) to become buyers across all scenarios over the next month.

On the corporate front, Reuters reported that Morgan Stanley’s E*TRADE unit is in talks with SpaceX to sell IPO shares to retail investors. Separately, Sysco Corp. announced it will acquire wholesale distributor Jetro Restaurant Depot LLC for $29.1 billion, including debt, creating one of the largest food service groups in the U.S.

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