In response to recent U.S. airstrikes, Iran has announced plans to shut down the Strait of Hormuz ā a critical chokepoint through which nearly 20% of the worldās oil supply flows.
This geopolitical escalation has sent shockwaves through the global energy markets. With the Strait acting as a vital artery for oil exports from the Middle East, any disruption could have severe implications on supply chains, pricing, and investor sentiment.
The threat of closure adds another layer of uncertainty to an already volatile macro environment. While multiple factors are contributing to the current market downturn, this development stands out as one of the most significant.
Traders and investors should closely monitor the situation. Energy prices may spike, and risk-off behavior across broader markets could intensify if the conflict escalates further.