Iran Strikes Strait of Hormuz Targets as Trump Imposes Tariffs

Global markets faced downward pressure on Friday following reports that Iran struck hostile targets in the Strait of Hormuz. The Iranian government announced it may bar vessels from the United States, Israel, and other hostile nations from transiting the waterway, noting that a traffic management deal with Oman would not fully reopen the trade route. A draft bill under review proposes fines of up to 20 percent of a ship's cargo value for violating these restrictions.

These maritime tensions, combined with Houthi attacks on military camps in Yemen and Saudi Arabia, pushed Brent crude futures toward $84 a barrel. In Lebanon, the Cabinet of Israel resumed military attacks in the south after an explosion killed two reserve soldiers and injured four others.

Simultaneously, President Donald Trump signed a trade measure imposing an additional 15 percent tariff on solar cells and modules shipped to the United States, effective December 4. The combination of Middle East instability and new U.S. trade policy triggered market volatility, contributing to a decline in Indian shares, with the BSE Sensex falling 0.58 percent and the NSE Nifty dropping 0.27 percent.