Overview
- Iran–U.S. tensions flared after the U.S. Navy fired on and seized the Iranian cargo ship Touska in the Gulf of Oman over the weekend, and Tehran vowed retaliation for what it called a ceasefire breach.
- President Donald Trump extended the truce on Tuesday after Wall Street closed and said the U.S. blockade of Iranian ports would continue, while planned talks in Pakistan stalled with the vice president’s trip on hold.
- Oil jumped sharply following Monday’s reopening losses, with Brent near the mid‑$90s and WTI near the high‑$80s to low‑$90s in what traders treated as a fresh supply‑risk premium tied to Hormuz.
- European stocks fell on Monday and Tuesday and government bond yields rose, including Germany’s 10‑year near 3% and France’s near 3.63%, as investors priced higher energy‑driven inflation, while energy shares like TotalEnergies outperformed.
- The Strait of Hormuz carries about one fifth of the world’s oil and gas, so a prolonged restriction could strain Europe’s limited reserves, lift fuel costs for airlines and drivers, and slow growth if prices stay high.