Iran’s state media said on Tuesday that Iran’s Islamic Revolutionary Guard Corps (IRGC) plans to target United States companies in the region from 1 April, describing this as retaliation for attacks on Iran. The report listed Google, Apple, Intel, Boeing, IBM and Tesla.
According to Reuters, an IRGC statement said the companies should “expect the destruction of their respective units” in response to “each terror act in Iran”, starting at 8 pm Tehran time on Wednesday, 1 April. The statement set out the timing and the intended targets.
Market moves cited alongside the report showed US indices rising at the time of publication. The Nasdaq Composite Index was up 1.15% on the day, while the S&P 500 was up 1%.
The market is currently ignoring a direct threat against major US companies, with the S&P 500 closing above 5,400. The CBOE Volatility Index, or VIX, is trading near a low of 14, suggesting that very little fear is being priced into the market. This kind of complacency creates an opportunity for traders who believe the risk is being underestimated.
Given that the threat specifically names companies like Apple, Google, and Tesla, their options show little immediate concern. We’ve seen implied volatility on 30-day options for these tech giants hit six-month lows just last week. Buying protective puts on these individual names could therefore be an inexpensive way to hedge against a targeted attack.
A broader strategy would involve buying out-of-the-money puts on the Nasdaq 100 (QQQ) or S&P 500 (SPY) that expire in the coming weeks. Because the VIX is so low, these contracts are relatively cheap and offer an asymmetric payoff if geopolitical tensions suddenly escalate. Even a small, contained incident could cause a sharp, albeit temporary, market correction.
We should also consider the potential impact on energy markets, as any conflict in the region directly threatens oil supply lines. WTI crude is currently stable around $85 a barrel, but this news could easily push it towards the $100 mark seen during previous escalations. Call options on oil futures or energy sector ETFs could perform well if the situation deteriorates.
We remember how the market initially dismissed the Strait of Hormuz tensions in late 2025 before a sudden spike in risk aversion. That event caused a brief 4% dip in the S&P 500 and sent oil futures soaring 15% in just two trading days. History suggests these threats should not be completely ignored, even if they seem theatrical at first.
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