Strait of Hormuz Threats Jolt Global Crude Markets

Brent and U.S. crude benchmarks surged as tensions flared in the Gulf, marking a volatile start to the trading week. While Tehran suggested a potential blockade of the strategic waterway, President Donald Trump insisted the route remains fully operational. This geopolitical friction triggered a retreat in Asian and European equities, with the Nikkei index recording notable losses.

The dollar remains resilient, buoyed by market anticipation of Federal Reserve interest rate adjustments and recent economic indicators suggesting a moderation in inflation. As the earnings season nears, attention has shifted toward the sustainability of the AI investment cycle. Analysts caution that high expectations for chipmakers and technology firms could lead to diminished financial returns, even as upcoming corporate reports and political developments threaten to sustain market turbulence throughout the week.