President Donald Trump has signalled that the US-Iran ceasefire is on life support and does not rule out resuming military action against the Islamic Republic. The global stock market is now bracing for impact as another escalation could send the economy into a tizzy. After rejecting Iran’s latest peace offer, Trump said that the talks are now on a “massive life support.”

The global stock market has once again entered the phase of uncertainty after remaining relatively stable in April. India’s Sensex fell 1,200 points on Monday and again crashed 800+ points on Tuesday. It has lost more than 2,000 points in just two days and is now at 75,200. Hong Kong’s Hang Seng index also turned red on Tuesday as oil prices surged due to Trump’s statements.

The stock market’s instability comes after Trump said to reporters at the Oval Office that Iran’s peace proposal is a “piece of garbage.” He also continued in the same breath that he “didn’t even finish reading it.” However, he stressed that the US is not under pressure and will be triumphant. “There’s no pressure at all,” he said. “We’re going to have a complete victory.”

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US Stock Market Remains Rangebound

The US stock market remained rangebound on Monday, with Dow Jones, Nasdaq, and the S&P 500 index experiencing a brief surge. Tuesday’s opening bell could add pressure on the indices as both countries are exchanging war of words. Traders can best avoid taking an entry position this week due to the ongoing tensions. Another war-like situation could send prices tumbling and make leading equities trade at square one.

If Trump does not reinitiate a war, the tensions would likely keep the stock market rangebound. The best solution now is to keep the cash in hand and wait for a downturn. Investing at dips when the market remains in fear is the best possible way to reap profits when the situation returns to normalcy.