Investors are bracing for another market jolt as President Donald Trump presses Iran with a fresh deadline, a move that has unsettled traders for weeks. The ultimatum, set for 8 p.m. New York time, follows a pattern of last‑minute extensions that have repeatedly rattled equities and foreign‑exchange markets. Futures on major U.S. indexes erased earlier losses, but volatility remains elevated among investors alike.

Currency traders have watched volatility gauges significantly climb to multi-month highs as the clock ticks down, prompting hedge funds to hedge exposure in emerging‑market debt recently and oil‑linked stocks. The uncertainty stems from Tehran’s stalled nuclear talks, where any concession could reshape sanctions and lift crude demand. Market participants therefore scramble to reposition ahead of the deadline, fearing sudden price swings.

Equity indices closed marginally higher after futures recovered, but the rally rests on a fragile premise. Should Tehran refuse to sign, investors could see a rapid sell‑off in risk assets and a rebound in safe‑haven bonds. The episode underscores how political brinkmanship now directly fuels short‑term market turbulence, leaving portfolio managers with limited leeway to plan beyond the evening deadline for both institutional and retail investors.