Strait of Hormuz Closed Amid Escalating US-Iran Tensions; Oil Prices Surge

Global markets have entered a phase of extreme volatility following the closure of the Strait of Hormuz, a critical maritime chokepoint for global oil supplies. This escalation follows the US seizure of an Iranian vessel, prompting Tehran to halt all diplomatic negotiations and ending hopes for a near-term de-escalation. Financial markets reacted with intense risk aversion, as Dow Jones futures extended their decline amid a broad sell-off in equities. Oil prices surged past the $90 per barrel mark as the closure threatens a significant portion of global crude transit. Analysts warn that the shutdown of this vital waterway represents a major escalation that is driving investors toward safe-haven assets. The financial community is now closely monitoring the duration of the closure and its potential impact on global energy security and inflation.