The broader market seems to be muted as we await further developments between the U.S. and Iran.

Eight sectors are in green territory, though none are holding gains wider than 1%. Energy (XLE) is the best performing sector as oil trades higher today. Financials (XLF) are the second-best performing sector, supported by gains in Coinbase Global (COIN) as bitcoin rises to its best level in a week. On the other hand, the Materials (XLB) sector lags the group.

In a briefing this morning, Trump reaffirmed Tuesday’s deadline is unlikely to be extended, calling Iran’s proposal not good enough. Trump further signaled a willingness to escalate attacks on Iranian infrastructure if a deal is not struck. Notably, the odds of a ceasefire by the end of April are still low, but rising.

This afternoon a headline from the Wall Street Journal affirmed that the U.S. military is preparing for potential strikes. The market seems to be reacting to this headline, retreating from this morning’s highs.

Strait of Hormuz Update

Vessel movements are increasingly split between Iranian and Omani routes. Data shows that most sanctioned and Iran favored trades, which include liquid tankers, LPG cargoes, and dry bulk carriers, are transiting via Iranian territorial waters. Meanwhile, a small number of non-sanctioned vessels, which include select VLCC and LNG shipments, have routed via Omani waters.

In addition, Iran is now allowing Iraqi ships to pass through the strait. Subsequently, Iraq is telling buyers to start collecting oil shipments.

Economic Data

March ISM Services PMI fell to 54 from 56.1 in February, missing consensus of 54.9. The report showed the services sector remained in expansion, but the employment index returned to contraction.

The prices paid component saw its biggest one-month increase since 2012.