The closure of the Strait of Hormuz, Trump's threats, the repercussions, and the widening rift between the two sides in the conflict have reignited market fears. West Texas Intermediate (WTI) crude oil surged by more than 6.3% to $87.78 per barrel, while Brent crude rose again to $95.70 per barrel, a gain of nearly 6%.
Gold also declined, with spot gold contracts falling 0.8% to $4,792.60 per ounce at 1:15 PM Riyadh time, in the first minutes of market opening. Gold futures dropped 1.4% to $4,811.69 per ounce.
Meanwhile, US stock futures suffered a sharp decline, erasing the record gains achieved last week, amid a sudden military escalation between the United States and Iran following the US seizure of an Iranian cargo ship.
Dow Jones futures fell by about 425 points, or 0.9%, while S&P 500 and Nasdaq futures dropped by 0.8%, reflecting panic in markets that had just celebrated reaching record highs.
Military Escalation and Ship Seizure in Oman
President Donald Trump announced on Sunday that the US Navy had fired on and seized an Iranian-flagged container ship in the Gulf of Oman after it attempted to breach the US naval blockade of Iranian ports. Trump explained via Truth Social that the ship was subject to US Treasury Department sanctions due to its "long history of illegal activities," and confirmed that the Marines were currently holding the vessel to inspect its cargo.
This US action came a day after Iranian Revolutionary Guard boats attacked an oil tanker in the Strait of Hormuz, and another container ship was struck by an unidentified projectile, according to the United Kingdom Maritime Trade Operations.$BTC #CZ’sBinanceSquareAMA #BitcoinPriceTrends #USInitialJoblessClaimsBelowForecast #Kalshi’sDisputewithNevada
