DENVER — The Dow Jones Industrial Average closed up more than 1,000 points on Tuesday after President Donald Trump appeared to suggest the U.S. may end the Iran war without reopening the Strait of Hormuz.
The Dow closed up 1,125 points, or 2.4%, while the S&P 500 climbed 2.9%. The tech-heavy Nasdaq increased 3.8%.
In a post on social media, Trump indicated that the task of reopening the strait may fall to other countries, urging them to "go to the Strait, and just TAKE IT."
▶️ WATCH: Denver7's Shannon Ogden talks stocks with Robert Persichitte, an MSU Denver affiliate professor of accounting.
Since the U.S.-Israeli war with Iran began on Feb. 28, Trump has voiced mixed messages about the expected duration of the war. On several occasions, markets have climbed after traders interpreted comments from Trump as a potential off-ramp from the Middle East conflict.
The war prompted Iranian closure of the strait, a maritime trading route that facilitates the transport of about one-fifth of the global oil supply. A potential U.S. exit from the war without ensuring that the strait is open could leave uncertain the path to a resumption of normal tanker traffic and a resulting remedy for the current global oil shortage.
Global oil prices surged more than 5% on Tuesday, exceeding $118 a barrel, just shy of its highest price since 2022. Gas prices in the United States topped $4 per gallon on average Tuesday, underscoring the link between rising oil prices and strained consumers.
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Gas pumps pack a price punch, with an average cost of $4 a gallon
Prior to today, global stocks had lost $7 trillion in value since the Iran war began, a dizzying ride for investors.
This afternoon, Denver7 anchor Shannon Ogden met with Robert Persichitte, an MSU Denver affiliate professor of accounting. Ogden asked him what so many of you want to know: what are we supposed to do with our stocks right now?
He emphasized what we sometimes tend to forget: investing in stocks is for the long-term.
"A lot of times the best response is to do nothing and wait it out. As long as that's an appropriate long-term investment for you. The way I like to think about it is your money is like a bar of soap. The more you touch it the less you have," Persichitte said.
Persichitte added that if the money you have invested in stocks is money you need now or if you don't have the temperament to endure dramatic swings in the market, stock investments may not be for you.
"You have to have that level of comfort with it. And if you are panicking and you know you are going to panic and you know you are going to be irrational if you wake up and see that bad news, it might be a good time to reassess and reevaulate," Persichitte said.
This story was reported on air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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