US Markets Rise as Trump Sanctions Iran and Canada

US stock markets closed higher on Tuesday, with the Nasdaq composite gaining 0.7% and the S&P 500 and Dow Jones Industrial Average each adding 0.3%. Gains were driven by technology and healthcare sectors, including Nvidia and Moderna, while falling oil prices eased inflation concerns. Brent crude dropped between 3% and 5.58%, falling as low as $85.49 per barrel.

Donald Trump intensified geopolitical tensions by announcing new sanctions against Iran and its trading partners, which Treasury Secretary Scott Bessent described as an economic D-Day. These measures appeared primarily targeted at China, prompting Chinese Foreign Ministry spokesperson Lin Jian to warn that such maximum pressure would disrupt the global economic order. Simultaneously, a Pakistani delegation led by Interior Minister Mohsin Naqvi met with Iranian President Masoud Pezeshkian to discuss the reopening of the Strait of Hormuz.

Trade relations with Canada deteriorated after the Trump administration threatened 50% tariffs on Canadian vehicles and steel. The Government of Canada responded by imposing tariffs of 15% to 50% on approximately $20 billion of American steel, dairy, and farm equipment. Prime Minister Mark Carney accused Washington of attempting to destroy major Canadian industries, while President Trump responded by threatening to rename Lake Ontario to Lake America.

In corporate news, Dick's Sporting Goods suffered a record plunge of nearly 31% after lowering its 2026 profit forecast due to industrywide challenges.