Trump Threatens Military Action After Red Sea Tanker Attacks

Attacks on two Saudi oil tankers in the Red Sea triggered significant global market volatility and prompted a military warning from the United States. Donald Trump threatened the Iran-backed Houthi rebels in Yemen with "major military punishment" if the ship attacks continue.

The geopolitical tension caused crude oil prices to surge, with the September contract rising by US$5.40 to US$92.23 per barrel. This spike coincided with a sharp downturn in North American equity markets. Canada's S&P/TSX composite index dropped more than 350 points, while New York markets saw steep declines, including a 581.79-point fall in the Dow Jones industrial average and a 681.86-point drop in the Nasdaq composite as technology stocks sank.