Former U.S. President Donald Trump issued a 48-hour ultimatum to Iran: reopen the Strait of Hormuz or face targeted U.S. strikes on key power facilities.
Iran responded by threatening to fully close the strait and attack energy and water infrastructure across the Gulf region.
Markets reacted immediately. S&P 500, Nasdaq, and Dow Jones futures declined. Oil prices surged on supply disruption fears-the Strait handles nearly 20% of global oil trade. Cryptocurrency markets dropped in tandem, and institutional investors began withdrawing from Bitcoin ETFs.
Analysts warn oil could breach $150 per barrel if conflict escalates. No diplomatic talks are currently active between the U.S. and Iran.