Iran announced the temporary closure of the Strait of Hormuz, a critical chokepoint for global oil shipments, significantly escalating geopolitical tensions in the Middle East. The move was accompanied by warnings to the United States to avoid a military escalation. This action directly threatens a substantial portion of the world's daily oil supply, raising immediate concerns about a potential surge in energy prices and disruptions to global trade. The closure injects a high degree of uncertainty into financial markets, with investors closely monitoring the situation for any potential military responses or further escalations that could impact the global economy.
Market Impact: The S&P 500 fell 0.52%, the Nasdaq Composite dropped 0.91%, and the Dow Jones declined 0.23%. Bitcoin decreased by 2.43% since the last session close, and Ethereum fell by 2.32%.