Hormuz shock: Trump’s blockade plan rattles Dow futures
Dow futures slid after failed U.S.-Iran talks and Trump said the Navy would begin blockading the Strait of Hormuz.
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Dow futures slid after failed U.S.-Iran talks and Trump said the Navy would begin blockading the Strait of Hormuz.
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The world’s 500 richest people gained $265 billion in a day after Donald Trump pulled back his threat of immediate military action, with the Dow up 2.85%.
Investors are treating the Iran shock as temporary, even as Nuveen strategist Laura Cooper warns more attacks on Gulf energy infrastructure may be underpriced.
Brent crude traded at $96 a barrel as investors weighed inflation risks, with economists expecting annual CPI at 3.4% and gas prices to surge.
Markets swung after the truce, with oil logging its biggest one-day drop since April 2020 before recovering and equities extending gains on expectations inflation would hold steady.
President Donald Trump warned Tehran over any fees on vessels in the Strait of Hormuz as West Texas Intermediate climbed and traders questioned whether the ceasefire will hold.
Sultan Al Jaber said passage through Hormuz depends on “permission, conditions and political leverage” from Iran as Brent climbed back above $99 a barrel.
Sultan Al Jaber said the Strait of Hormuz was “not open” as Brent rose above $99 and US crude topped $102 briefly.
Brent rebounded above $99 a barrel as traders questioned whether the Strait of Hormuz will reopen after the ceasefire.
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