US-Iran Strikes Rattle Markets as Hormuz Stays Shut
Renewed US-Iran military exchanges and a closed Strait of Hormuz sent oil surging 4% while equities and gold sold off to open the week.
Fresh US-Iran military strikes over the weekend reignited market anxiety Monday, as both nations exchanged blows despite a ceasefire memorandum signed more than three weeks ago. The US struck dozens of Iranian targets in a new wave of attacks, while Iran retaliated by launching ballistic missiles at Jordan, keeping geopolitical risk squarely at the center of global trading.
President Trump acknowledged that talks could still continue, but made clear the ceasefire is effectively over. The conflict's most consequential economic chokepoint — the Strait of Hormuz — remains in de facto closure, sustaining upward pressure on energy prices and keeping traders on edge about how much longer the standoff will drag on.
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Oil markets responded sharply to the escalation. WTI crude jumped 4% to $74.33 per barrel at the open, while Brent crude climbed more than 4% to $79.10 — a sign that supply fears are outpacing any diplomatic optimism. The moves underscore how critical the Strait of Hormuz is to global oil flows, and how vulnerable energy markets remain to every new headline.
The risk-off mood spread quickly beyond commodities. S&P 500 futures fell 0.5% and Nasdaq futures dropped 1.4%, extending a cautious tone from last week. US 10-year Treasury yields climbed back toward 4.58%, retesting June highs, while gold slid 1.6% to $4,054 and silver dropped 2.9% to $58.10 — unusual moves for traditional safe-haven assets that suggest broader deleveraging rather than a clean flight to safety.
With neither side appearing close to returning to the negotiating table and a promised 60-day resolution timeline looking increasingly unrealistic, markets face prolonged headline risk. Traders are likely to remain reactive to each new development until a credible diplomatic path emerges. Continue reading at Forexlive.
