Trump's Explosive Threats Rattle Markets as US-Iran Talks Open in Switzerland

A Diplomatic Table Set With Dynamite

High-stakes peace negotiations between the United States and Iran got off to a turbulent start on Sunday, June 22, when President Donald Trump made explosive threats toward Tehran even as the two countries' delegations sat down together in Switzerland. Rather than allowing the diplomatic process to unfold quietly, Trump took to Fox News to deliver a blunt warning that rattled global financial markets and temporarily halted the talks themselves.

After Iran said it was closing the Strait of Hormuz again as Israel continued attacking Hezbollah positions in Lebanon, Trump told Fox News he had spoken with Iranian officials and warned them, "You close it and you won't have a country." He also said the U.S. may take over the strait entirely, adding that if Iran doesn't make a deal, the U.S. would "collect tolls" — a remarkable statement made while a memorandum of understanding between the two nations, which had reopened the strait and ended the U.S. naval blockade, was barely a week old.

Markets React, Oil Wavers

U.S. stock futures fell after the rocky start to peace talks, with futures tied to the Dow Jones Industrial Average dropping 156 points, or 0.30%, while S&P 500 futures fell 0.46% and Nasdaq futures lost 0.52%. The reaction reflected how deeply intertwined this geopolitical standoff has become with everyday economic life — from Wall Street trading desks to gas stations across the country.

If negotiations succeed and shipping through the Strait of Hormuz returns to pre-war levels, oil could "flood" the markets and continue to lower costs for consumers, according to a Columbia University researcher. The average gallon of gas cost Americans about $3.94 on Sunday — down nearly 14% from a month ago, but still almost a dollar more expensive than before the war began. One energy analyst warned it "might be a while" before gas prices return to pre-war levels, noting that while prices have fallen from a wartime high of over $4.50 per gallon, they remain well above the roughly $3 per gallon seen a year ago.

Iran Pauses — But Stays at the Table

While Iran halted talks after Trump's comments, its delegation remained in Switzerland to continue negotiations. Iran's chief negotiator denounced what he called American "desperation," and Iranian President Masoud Pezeshkian declared that Iran would "never back down from the right to enrich uranium," while insisting its nuclear program is peaceful. The dispute over Lebanon further complicated the atmosphere: Iran argued that the U.S. failure to rein in Israel violated the terms of last week's tentative agreement, which specifies that all fighting in Lebanon must end.

After Iran declared the strait closed, U.S. Central Command insisted safe passage remained intact and that traffic was up, pointing to a Joint Maritime Information Center advisory affirming that a southern route along Oman's coast is safe. Tehran's new Persian Gulf Strait Authority, meanwhile, warned that ships must follow a regime-established route along the Iranian coast and that alternatives are prohibited — leaving shipping companies caught in a dangerous standoff between two competing authorities.

A Road Map, But the Road Is Rocky

The first round of high-level negotiations ultimately concluded with both sides agreeing to "a road map" to reach a final deal within 60 days and establish a communication line to avoid incidents in the Strait of Hormuz, with mediators from Qatar and Pakistan announcing that "encouraging progress" had been made and an "immediate commencement of technical talks." Vice President JD Vance said negotiators had made "a lot of good progress" on ensuring the strait stays open and on setting up a coordination mechanism for demining it.

The 60-day window is now ticking. Trump claimed that after the negotiation window ends, "I can do whatever I want." With Lebanon still smoldering, Iran's nuclear ambitions unresolved, and a president who negotiates as much through television threats as through diplomats, the path to a lasting agreement remains as narrow and contested as the strait at the center of it all.