07:58 AM EDT, 03/23/2026 (MT Newswires) -- Broad asset classes were selling off into a fresh trading week until "moments ago," said Scotiabank.

The driver of the negative sentiment was President Donald Trump's Saturday night ultimatum to Iran to "fully" reopen the Strait of Hormuz by about 7:45 p.m. ET on Monday "without threat" or the United States will "obliterate their various power plants, starting with the biggest one first," which is presumably a reference to the 2,900 megawatt Damavand plant, noted the bank.

Iran responded by threatening to indefinitely close the Strait of Hormuz, to attack "all energy, information technology, and desalination infrastructure" across the region as well as financial entities, and by escalating missile strikes against Israel.

Markets were left "pricing a game of chicken," stated Scotiabank.

Then Trump hit with a new post "moments" before the bank issued its "Daly Points" note. Trump claims that the U.S. and Iran have had talks and de-escalation is in order as he has "instructed the department of war to postpone any and all military strikes" against the targets he laid out earlier.

As a result, markets swung from double-digit basis point increases in sovereign debt yields across major markets to notable rallies in the high single digit declines in basis points to double digits, pointed out Scotiabank.

Oil prices went from slightly higher to double-digit percentage point declines at the time of writing the bank's note. Market moves are likely being overstated on position swings.

"Uncertainty is being driven through the roof to the detriment of the economy and markets," added Scotiabank.