Global markets have been rattled after Donald Trump announced a US naval blockade of the Strait of Hormuz, escalating tensions following failed peace talks with Iran.
Global markets slide as Donald Trump orders Strait of Hormuz blockade
The Indian flagged LPG carrier Jag Vasant transporting liquefied petroleum gas, is seen at the Mumbai Port in Mumbai, India, after it arrived clearing the Strait of Hormuz.
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AP Photo
US stock futures dropped sharply in response, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all falling by more than one percent, reflecting investor anxiety over a potential prolonged conflict.
At the same time, gold prices also declined, with futures on the New York Mercantile Exchange slipping below 4,700 dollars an ounce, marking losses of more than two percent at one stage.
Oil markets, however, surged dramatically amid fears of supply disruptions in one of the world’s most critical energy corridors. West Texas Intermediate jumped over eight percent to above 104 dollars a barrel, while Brent Crude rose more than seven percent on the ICE Futures Europe.
Analysts say the breakdown in talks between the US and Iran is fueling concerns that the conflict could drag on, pushing oil prices even higher and adding further strain to an already fragile global economy.