"Oil is up because it is now clear to traders that Iran has successfully closed the Strait of Hormuz and laid sea mines within it, according to Fortune's Eva Roytburg. Eighteen ships in the area have been struck so far. The U.S. Navy has not yet managed to provide safe passage for tankers in the Strait."
"The stock market may be starting to discount the possibility that the war won't be short and that the Strait of Hormuz may remain effectively closed for some time, according to Ed Yardeni of Yardeni Research. At ING, Chris Turner noted the dollar is pushing to new highs as the market struggles to see a way out of the Middle East crisis."
"Israeli intelligence suggests the regime in Tehran is not likely to fall soon, despite President Trump's insistence that Iran is about to surrender. The president also said yesterday on social media, We have unparalleled firepower, unlimited ammunition, and plenty of time. Those last three words seem to be the ones being taken most seriously by investors today."
Global markets declined significantly with the S&P 500 down 1.52%, while Asian and European indices fell sharply. India's Nifty 50 dropped over 2% and South Korea's KOSPI fell 1.72%. Oil prices surged above $100 per barrel after Iran successfully closed the Strait of Hormuz and deployed sea mines, with eighteen ships struck. The U.S. Navy has not yet secured safe passage for tankers. Israeli intelligence indicates Iran's regime remains stable despite Trump's claims of imminent surrender. Investors are particularly concerned about Trump's statement regarding "plenty of time," suggesting markets are pricing in a prolonged conflict and extended Strait closure. Analysts note the dollar strengthened as markets struggle to identify resolution paths for the Middle East crisis.
Read at Fortune
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