US-Iran Tensions Escalate as Oil Spikes 9% Following Strait of Hormuz Closure

Global markets faced a sharp reversal as geopolitical tensions flared between the US and Iran, ending a brief period of de-escalation. WTI crude prices surged 9% and European natural gas climbed 9.8% following Iran's decision to re-close the strategic Strait of Hormuz. The military escalation intensified after US forces seized an Iranian cargo ship in the Gulf of Oman, responding to an earlier attack on an Indian tanker. Meanwhile, Tehran dismissed President Trump's claims regarding a potential nuclear deal, stating it would not participate in upcoming negotiations. This geopolitical friction triggered a risk-off sentiment, causing S&P 500 futures to drop 1% while Bitcoin and Gold also retreated. The sudden collapse of ceasefire hopes represents a significant supply-side shock to energy markets and a flight to safety across asset classes.