Iran-U.S. Military Escalation in Strait of Hormuz Threatens Oil Supply

Key Facts

1Iran said it targeted US military positions after Trump ordered strikes over an alleged ceasefire violation in the Strait of Hormuz.

In an escalation threatening global energy security, Iran said it targeted U.S. military positions in response to strikes ordered by President Donald Trump over an alleged ceasefire violation in the Strait of Hormuz, according to reports. This marks the most serious development in the region in months, as the strait handles about 20% of global oil supply, raising fears of disruptions and a sharp spike in crude prices.

The tensions are expected to trigger a risk-off wave in equity markets as investors flock to safe havens. Per market data, ExxonMobil (XOM) closed at $136.54 (June 26 close), while Chevron (CVX) ended at $171.06, both exposed to selling pressure from rising risk premiums. Meanwhile, Newmont (NEM) climbed to $96.13 as gold demand surged, and European peers BP ($37.13) and Shell ($76.53) traded at similar levels.

Traders should monitor the coming days: any reports of strait closures or fresh strikes could push oil and gold higher. At the last close, XOM traded between $135.92 and $137.58, while NEM ranged $95.34 to $97.88, providing immediate support and resistance levels. No major economic releases are near, but military escalation remains the dominant catalyst.