Iran Attacks Strait of Hormuz as Trump Predicts War's End

Geopolitical tensions escalated in the Middle East as Donald Trump asserted U.S. control over the Strait of Hormuz following Iranian attacks on hostile targets. Iran announced intentions to block Israeli and United States vessels from the waterway, a move that follows an ongoing war between the two nations that began in late February. While Trump stated that a deal to reopen the strait was imminent and predicted the war would end soon, Iran simultaneously warned Gulf states against supporting U.S. military strikes.

In the Red Sea and Gulf of Aden, Houthi militants claimed ballistic missile strikes on two Saudi Arabian oil tankers, the Wafa and the Daisy. The Houthis also launched a large-scale attack against the Saudi-backed government of Yemen, fueling fears of a broader regional conflict. These disruptions caused crude oil prices to surge and pushed gold prices to approximately $4,245 an ounce.

Financial markets reacted to the instability and potential inflationary pressures. Federal Reserve Chairman Kevin Warsh and St. Louis Fed President Alberto Musalem indicated that the central bank may raise borrowing costs if inflation remains high. Meanwhile, U.S. labor market data remained strong, with weekly unemployment claims falling to 199,000.