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Dow Jones gives back gains as hopes for Hormuz reopening fade
Iranian officials said a shipping routes agreement with Oman would not reopen the Strait of Hormuz without Washington changing its behavior, helping pull back equity momentum.
The Dow Jones Industrial Average broke above a three-session ceiling near its record level but then reversed, trading up through 54,200 before surrendering the move. By the latest read, the index was just under 54,000 and was flat versus the prior close, with a roughly 370-point session range that produced no net change.
The reversal followed softer hopes that the Strait of Hormuz would reopen. FXStreet reports that Iranian officials said an agreement with Oman on new shipping routes would not by itself reopen the waterway, adding that Hormuz stays shut for as long as Washington does not change its behavior.
Iran’s conditions for access were described as extending beyond route geography, including items tied to a naval blockade, sanctions, withdrawal of American forces, payment for war damage, and release of frozen assets. Separately, crude oil traded about 1% higher above $83.00, with the international benchmark above $88.00.
The article also pointed to rate markets reacting more than equities, with the 10-year Treasury yield moving back above 4.72% after trading near 4.61% earlier. FXStreet said September rate-increase expectations, which were near a coin flip the prior day, were marked higher again even as the Dow stayed pinned near unchanged levels.
Latest closeWTI crude $82.30 ▲5.3%|Dow Jones 53,975.98 ▼0.1%