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Dow slides as Strait of Hormuz talks lapse with no replacement deal
The index was down about 200 points near 53,550, while WTI hovered around $83 and Brent stayed above $88 on renewed escalation risk.
The Dow Jones Industrial Average traded near 53,550, down close to 200 points, and roughly 1,200 below its August 5 record after a 60-day negotiating window over the Strait of Hormuz expired without an agreed replacement, according to FXStreet.
For a second straight session, the index's high came at the open, and the article notes there were no direct talks under way as the Versailles memorandum period ended. It also highlights warnings from Iranian officials that diplomacy failure could lead to a shift toward more offensive actions in the Strait and across the wider region, alongside references to preparations discussed by the Revolutionary Guard.
FXStreet also points to shipping activity, saying three vessels crossed the Strait on Sunday versus a five-day average of about 12, and it cites a statement from Trump to Oman that interference would be met with bombing. The piece links the equity move to a broader market pricing of crude risk, with WTI near the $83 level and Brent above $88.
The article adds that three major U.S. refiners are trading at or near record levels, including Valero at an all-time high and Marathon Petroleum at its best since its 2011 separation, while Phillips 66 is at a record since listing. It attributes part of the strength to diesel margins running near $100 a barrel amid Ukrainian strikes taking Russian refining offline and Gulf capacity disruptions behind the chokepoint.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%|Dow Jones 53,732.41 ▼0.2%