Trump Reinstates Hormuz Blockade After US-Iran Airstrikes

Oil prices and financial markets surged and plummeted respectively on Monday after the United States and Iran engaged in a series of airstrikes. The escalation began over the weekend when an Iranian attack set a container ship ablaze in the Strait of Hormuz, prompting the U.S. to launch several waves of retaliatory strikes on Iran.

Donald Trump responded to the instability by reinstating a blockade to prevent Iranian oil tankers from using the strait. He further demanded 20% payments on all cargo shipped through the area to reimburse the U.S. for security protection. Both nations currently claim control over the strait, which has disrupted oil deliveries from the Persian Gulf.

Financial markets reacted sharply to the conflict. Brent crude prices rose between 3.6% and 9.6%, while Treasury yields increased due to inflation fears. In Asia, the South Korean Kospi dropped nearly 9%, with SK Hynix shares plunging 15.4%. AI-driven stocks, including Nvidia and Micron Technology, also saw significant losses as investors grew concerned over valuations and sustainable demand.