US-Iran Conflict Rattles Markets as Hormuz Stays Shut
Escalating US-Iran strikes and a closed Strait of Hormuz sent oil surging 4% while stocks and gold fell sharply to open the week.
Fresh US-Iran military exchanges over the weekend reignited market anxiety Monday, with both sides trading strikes more than three weeks after a ceasefire memorandum was signed — a deal that has so far produced nothing tangible. President Trump acknowledged talks could continue while simultaneously declaring the ceasefire over, leaving investors with contradictory signals and no clear off-ramp from the conflict.
The Strait of Hormuz remains in de facto closure, and that single chokepoint continues to drive the dominant narrative across commodity and financial markets. With Iran reportedly targeting Jordan with ballistic missiles and the US striking dozens of Iranian targets in a new wave of attacks, the fighting shows no sign of de-escalating toward the 60-day resolution timeline that had been floated earlier.
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Oil prices surged sharply in response, with WTI crude jumping roughly 4% to $74.33 a barrel and Brent crude climbing a similar margin to $79.10. The moves reflect sustained anxiety over Persian Gulf supply disruptions that have persisted since the waterway's closure began.
The risk-off mood spread broadly across asset classes. S&P 500 futures slid 0.5% while Nasdaq futures dropped a steeper 1.4%, extending a pattern of equity fragility tied to geopolitical headlines. U.S. 10-year Treasury yields climbed back toward 4.58%, retesting June highs, while gold fell 1.6% to $4,054 and silver dropped 2.9% to $58.10 — an unusual selloff in traditional safe havens that may reflect liquidity-driven repositioning.
With neither side appearing close to negotiations and headline risk running high, traders are bracing for continued volatility tied to each new development in the conflict. Continue reading at Forexlive.
