Stocks rose again on Tuesday as oil prices dropped and companies kept posting strong first quarter results.
The S&P rose 0.86% and hit a new record, clocking in at 7,262.98. The tech-heavy Nasdaq Composite climbed 1.02% and the Dow Jones Industrial Average did so by 0.73%.
Oil prices dropped after the U.S. said the ceasefire with Iran is not over despite Tehran's attacks and Washington guaranteeing passage for a ship through the Strait of Hormuz
Both Brent crude and the West Texas Intermediate fell, reversing some of the increases seen on Monday. The former did so by 3.71%, standing above $110 at 4:08 p.m. ET, while the latter dropped 3.55%%, standing at $102.64 at the same time.
President Donald Trump also downplayed the flare up. Speaking to reporters during the signing of a proclamation related to youth fitness, Trump said incidents amounted to a "skirmish."
"I call it a skirmish because Iran has no chance. They never did. They know it," Trump said. Asked about what would constitute a perceived breach of the ceasefire, he said: "You'll find out because I'll let you know."
Trump, however, threatened Iran over its attempts to target ships attempting to cross, saying it would be "blown off the face of the Earth" if its forces seek to prevent ships from crossing the key waterway.
He went on to say that the U.S. military buildup in the region continues to grow. "We have more weapons and ammunition at a much higher grade than we had before."
"We have the best equipment. We have stuff all over the world. We have these bases all over the world. They're all stocked up with equipment. We can use all of that stuff, and we will, if we need it."
The threat comes after the commander of the U.S. Central Command (CENTCOM) Brad Cooper, said U.S. forces sunk six Iranian small boats that were targeting civilian vessels in the Strait of Hormuz. Trump said on Tuesday the figure had climbed to eight. "They're all gone. And they're fast, but they're not fast like a missile. A missile is slightly faster," Trump said.
Iranian Foreign Minister Abbas Araghchi said in a social media post on Monday that the developments "make clear that there's no military solution to a political crisis."
"As talks are making progress with Pakistan's gracious effort, the U.S. should be wary of being dragged back into quagmire by ill-wishers. So should the UAE. Project Freedom is Project Deadlock," he added.
