Oil surges, global stocks slide after Iran closes Strait of Hormuz

Oil prices surged and global stocks fell broadly on Monday after the United States carried out a fresh wave of airstrikes against Iran over the weekend and Tehran declared the Strait of Hormuz closed to commercial traffic, reigniting fears of a prolonged disruption to one of the world's most critical energy chokepoints.

Markets React to Weekend Strikes

Brent crude jumped more than 3.5% to nearly $79 a barrel, while U.S. benchmark West Texas Intermediate crude rose by a similar margin. The S&P 500 slipped on the session, while U.S. stock futures had pointed sharply lower overnight, with Nasdaq Composite futures falling 1.2% and S&P 500 futures declining 0.4% ahead of the opening bell. The Dow Jones Industrial Average futures were nearly flat, faring better than the tech-heavy indexes.news4jax+2

In Asia, Tokyo's Nikkei 225 lost 1.9%, while Seoul's Kospi tumbled 9% to its lowest level since April. Hong Kong's Hang Seng edged slightly higher, and the Shanghai Composite shed 2.1%. South Korean chipmakers SK Hynix and Samsung Electronics were hit especially hard, falling 15.4% and 10.7% respectively.news4jax

Escalation Timeline

U.S. Central Command said it completed strikes against dozens of Iranian military targets on the night of July 12, hitting air-defense systems, coastal radar sites, and missile and drone capabilities using fighter aircraft, naval vessels, and for the first time, one-way attack sea drones. The strikes followed an earlier round on July 7-8 that hit approximately 170 targets across two nights, including more than 60 Islamic Revolutionary Guard Corps small boats.centcom+2

The military action came after Iran attacked commercial vessels transiting the Strait of Hormuz, violating a ceasefire that had been agreed in late June. President Donald Trump declared on July 8 that the interim deal with Iran was "over". Iran responded by declaring the Strait of Hormuz closed until U.S. interventions end.reuters+3

Investor Outlook Darkens

The renewed hostilities come as Wall Street prepares for a heavy week of earnings and economic data. Major banks including JPMorgan Chase ↘ 0.73%, Goldman Sachs The Goldman Sachs Group, Inc. ↘ 1.38%, and Bank of America ↘ 0.36% are set to report Tuesday alongside the June consumer price index, which is expected to show headline inflation at 3.8%. Investors fear that sustained oil price increases could reignite inflationary pressures and complicate the Federal Reserve's path on interest rates.cnbc

Oil prices remain well below the $100-plus levels seen at the peak of the conflict earlier this year, but analysts warn that a prolonged closure of the Strait of Hormuz — through which roughly one-fifth of the world's oil passes daily — could quickly change that calculus.