Trump prioritizes reopening Strait of Hormuz amid Iran conflict

## Market Snapshot

The market for a potential U.S. invasion of Iran by 2027 is currently priced at 21.5% YES, up from 20% a day ago. The likelihood of a US-Iran nuclear deal by June 30 is priced at 37% YES, down from 39% a day ago. Meanwhile, the market for WTI Crude Oil prices reaching $150 in May is priced at 3% YES.

## Key Takeaways

– Trump’s shift towards reopening the Strait of Hormuz appears to suggest increased military pressure, consistent with a higher likelihood of U.S. invasion scenarios. – The delay in nuclear negotiations indicates a setback for a US-Iran nuclear deal by June, suggesting a decrease in the probability of reaching an agreement. – The focus on military actions related to the Strait of Hormuz may indicate potential upward pressure on WTI Crude Oil prices, reflecting heightened geopolitical tensions.

## Article Body

President Donald Trump has adjusted his strategy in dealing with the ongoing conflict with Iran, prioritizing the reopening of the Strait of Hormuz, a critical chokepoint for global oil transit, at all costs. This shift comes amid ongoing hostilities and stalled diplomatic efforts involving the U.S., Israel, and Iran. The conflict, which began in February 2026, has seen significant military engagements, including the closure of the Strait by Iran in retaliation for U.S.-Israeli airstrikes. Trump’s current approach suggests a pivot away from immediate nuclear and ballistic missile negotiations, focusing instead on ensuring the flow of oil through the Strait. This decision comes as recent military actions have included disabling an Iranian tanker, escalating tensions further.

## Market Interpretation

The market reaction to Trump’s policy shift appears supportive of a YES outcome in the U.S. invasion of Iran market, as the focus on military measures suggests increased pressure. This development is interpreted as having a moderate impact. Conversely, the postponement of nuclear talks is consistent with a NO outcome for the nuclear deal by June, with a high impact implied by the market adjustment. In the oil market, the focus on reopening the Strait suggests potential upward pressure on WTI prices, indicating a moderate impact on the likelihood of prices reaching $150 in May.

## What to Watch

Observers should monitor any further military actions from the U.S. and Iran, particularly those affecting the Strait of Hormuz. Attention should also be paid to any diplomatic efforts or statements from key actors like President Trump, the Iranian government, or international mediators that could influence the situation. Additionally, fluctuations in WTI Crude Oil prices and related market indicators will be crucial in assessing the impact of geopolitical developments on energy markets.

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US-Iran nuclear deal by june bearish

37% FLAT

WTI crude oil prices in may 2026 bullish

3% FLAT