Overview
- U.S. Central Command said the military launched strikes on Iran for a third straight night, and President Trump announced a reinstated blockade plus a proposed 20% fee on vessels using the Strait of Hormuz, reopening the confrontation that eased in late June.
- Brent crude jumped roughly 9–10% in a single session to the mid‑$80s per barrel, the largest one‑day gain in years, as reported trading prices spiked and tanker transits through the Strait fell to multi‑week lows.
- Global risk appetite fell as major U.S. indexes closed lower, S&P 500 down about 0.8% and the Nasdaq down about 1.6%, while Asian and regional bourses including India’s Sensex and Pakistan’s KSE‑100 recorded sharp intraday losses.
- Investors moved into safer assets and pushed up U.S. Treasury yields and the dollar, with Fed funds futures raising the odds of a July rate hike as markets reassess inflation after the oil shock.
- The strikes and tanker hits reported by the UAE, which said two tankers were struck with crew casualties, have tightened trade flows through the Hormuz chokepoint and risk higher fuel costs, wider inflationary pressure and balance‑of‑payments stress for large oil importers such as India and Pakistan.