Home›Global Markets›Trade & Tariffs›US moves to reinstate Iranian Strait of Hormuz blockad…

US moves to reinstate Iranian Strait of Hormuz blockade regime

The announcement came alongside a 20% US cargo reimbursement and helped push WTI futures more than 5% above $75 before the Dow gave back gains.

Reported · Written up by our desk · Trade & Tariffs

Risk aversion shaped Monday trading as the Dow Jones Industrial Average held up better than other major indexes, with the broader tape tied to developments around the Strait of Hormuz, where Tehran, Washington, and Gulf states have exchanged attacks and messaging about shipping access, FXStreet reported.

After weekend escalation, Washington signaled a shift from military posture to commercial policy tied to the Strait. Trump said the United States is reinstating what he called the Iranian blockade, that the lane is limited to commercial shipping excluding Iranian vessels and their customers, and that Washington will collect a 20% reimbursement on cargo it allows to pass, FXStreet reported.

The market reaction flowed quickly through energy prices. Crude oil moved first, with West Texas Intermediate futures jumping more than 5% to trade above $75 and Brent rising 5.3% toward $80 per barrel, according to FXStreet.

Equities later reflected the same concern through an inflation lens tied to supply chokepoints and goods costs. The Dow briefly surged to a mid-afternoon session high of 52,840.68 after which the move unraveled within an hour, leaving the index near 52,525, down 0.2%, while the Nasdaq was down 1% and the S&P 500 off 0.4%, FXStreet reported.

Latest closeWTI crude $78.04 ▲9.3%|Brent $83.15 ▲9.4%|S&P 500 7,515.34 ▼0.8%

More like this

Sources