Trump Issues Ultimatum to Iran Over Strait of Hormuz as Geopolitical Tensions Surge

Key Facts

US President Donald Trump has issued a critical ultimatum demanding that Iran fully reopen the Strait of Hormuz by midnight tonight as the regional conflict enters its fourth week. This escalation has heightened global energy supply fears, driving financial markets toward stagflation positioning and a sharp risk-off sentiment. In response to the potential crisis, ECB President Christine Lagarde stated at the ECB Watchers Conference that the bank's strategy relies on assessing the nature, size, and persistence of the energy shock before making policy decisions. The ECB emphasized the critical need to identify when higher energy prices might translate into broader inflationary pressures across the Eurozone. Meanwhile, safe-haven assets like Gold (XAU/USD) continue to see increased demand, while equities and risk-sensitive instruments face significant downward pressure. Traders remain focused on the approaching deadline and the subsequent central bank reactions to any further disruption in energy transit.