Oil Jumps 3.5% as Strait of Hormuz Stays Shut on US-Iran Clash
WTI crude surges to $73.90 as the Strait of Hormuz remains closed and US-Iran strikes continue with no talks in sight.
Oil is the trade right now. WTI crude is up 3.5% to $73.90 and it's not hard to see why — the Strait of Hormuz is shut, the US and Iran are still exchanging strikes, and there's zero sign either side is ready to sit down and talk. As long as that chokepoint stays closed, energy bulls have a real fundamental backstop.
The broader market mood is defensive but not panicked. S&P 500 futures are off 0.3% and Nasdaq futures are down 0.9%, with tech taking the brunt of the selling in pre-market. European equities are holding up better, staying marginally in the green. That split tells you traders are rotating, not fleeing entirely.
Read more Oil Surges 10% as Trump Blockades Iran and Taxes Hormuz Shipping →
The dollar's safe-haven bid softened a touch during the European session. EUR/USD climbed from 1.1400 to settle around 1.1430, and GBP/USD bounced off early lows near 1.3370 to land around 1.3390. USD/JPY pulled back from 162.30 to 162.10 — GPIF portfolio chatter out of Japan is adding some noise to yen moves worth watching.
Gold is surprisingly weak here, down 1.4% to $4,063, which suggests cash and the dollar are still the preferred safety trade over precious metals. Bitcoin is also getting hit, dropping 2% to $62,863. Risk-off is real, but it's selective. Ten-year Treasury yields are up just 1 basis point to 4.579%, hovering near June highs.
The big macro catalyst this week is the US CPI print, and Fed's Williams already put a line in the sand — he'll back rate hikes if monthly core inflation averages above 0.2%. Keep that in mind when you're sizing positions into the number. For now, the Middle East is driving the bus. Continue reading at Forexlive.
