Overview
- U.S. forces said they shot down multiple Iranian drones and struck a drone-control site near Bandar Abbas after renewed exchanges with Tehran on Wednesday.
- Iran's Revolutionary Guard reported attacks on U.S. targets and warned of stronger retaliation if strikes continue, while Tehran's state media published a disputed draft framework for reopening the Strait of Hormuz.
- The fighting has left shipping through the Strait effectively constrained, sending Brent and U.S. crude sharply higher and forcing insurers and shippers to reroute or pause Gulf cargoes.
- Global markets reacted quickly with Asian equities falling, U.S. futures choppy, Treasury yields and the dollar rising, and major risk assets reversing earlier gains driven by AI and earnings optimism.
- Crypto markets saw steep losses after large net outflows from U.S. spot-Bitcoin ETFs furthered selling pressure, and analysts warn that higher fuel costs could boost inflation readings that shape Fed policy next week.