US-Iran Conflict Rattles Markets as Hormuz Stays Closed
Renewed US-Iran strikes send oil surging 4% and push equities lower as the Strait of Hormuz remains shut for a third week.
Fresh US-Iran hostilities jolted global markets Monday as both nations exchanged new rounds of strikes over the weekend, shattering any hopes that a ceasefire signed more than three weeks ago would hold. The United States hit dozens of Iranian targets in its latest wave of attacks, while Iran responded by launching ballistic missiles at Jordan, deepening a conflict that has now far outlasted the 60-day resolution timeline that officials had promised.
President Trump acknowledged that talks could theoretically resume but made clear the ceasefire is effectively dead, leaving the Strait of Hormuz — a chokepoint for a significant share of global oil shipments — in de facto closure for the third consecutive week. With neither side showing any inclination to return to the negotiating table, traders are left pricing in an indefinite extension of the conflict and the supply disruptions that come with it.
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Oil markets reacted sharply, with WTI crude jumping 4% to $74.33 a barrel and Brent crude climbing more than 4% to $79.10, as the prospect of prolonged Hormuz closure stokes supply fears. The move higher in energy prices is rippling outward in classic risk-off fashion, punishing stocks, bonds, and even traditional safe-haven metals simultaneously.
US equity futures fell broadly, with S&P 500 contracts down 0.5% and Nasdaq futures off 1.4% heading into the European session. The 10-year Treasury yield climbed back toward 4.58%, retesting June highs, while gold dropped 1.6% to $4,054 and silver slid 2.9% to $58.10, suggesting forced liquidation rather than a clean flight to safety.
With headline risk back at the forefront and no diplomatic off-ramp in sight, markets face a week defined by geopolitical uncertainty and energy-driven volatility. Continue reading at Forexlive.
