The announcement of a 20% toll on cargo through the Strait of Hormuz has led to a surge in oil prices, which jumped over 9% on Monday, marking the largest daily gain since 2020.
This increase follows Trump's reinstatement of the Iran blockade and his assertion that the U.S. will act as 'THE GUARDIAN OF THE HORMUZ STRAIT.' Despite U.S. military assurances regarding oil transport security, concerns about energy supply remain high.
Consequently, U.S. stock indexes fell, with the S&P 500 down 0.8%, the Nasdaq Composite dropping 1.6%, and the Dow Jones Industrial Average retreating by over 100 points. Futures markets showed little change as investors brace for upcoming earnings and inflation data. In Asia, markets opened lower amid a risk-off sentiment, with investors also awaiting trade data from China.
Additionally, the U.K. and Switzerland have signed a services free trade agreement, expected to boost British exports by £5.2 billion ($6.96 billion) annually, which may provide some positive economic news amidst the current market volatility