U.S. equity indexes experienced modest gains while oil futures rose above $112 per barrel as investors awaited a resolution to Middle East tensions. President Trump threatened Iran with escalating strikes unless a deal was reached. Meanwhile, market activity was subdued following the long weekend and global holidays.

Market Jitters: U.S. Stocks and Oil Rise Amidst Tensions with Iran

U.S. equity indexes closed slightly higher as oil futures climbed past $112 per barrel, driven by uncertainties surrounding Middle East tensions. Investors are eagerly awaiting clarity on U.S.-Iran relations, with President Trump issuing stern threats to Iran if a deal isn't reached by Tuesday night.

Iran seeks a lasting resolution with the U.S. and Israel, emphasizing reluctance to reopen the Strait of Hormuz. Yet, Trump's ultimatum looms, further complicating prospects for peace. Market experts suggest traders are focused on geopolitical risks as they await developments on whether Trump will escalate military actions.

Despite initial volatility, U.S. crude prices rose, while Wall Street indices saw minor gains. Key indexes like the S&P 500 and Nasdaq marked their fourth consecutive advance. Meanwhile, global markets remained quiet due to the Easter Monday holiday, affecting currency and treasury yields.

(With inputs from agencies.)