Markets reacted sharply to reports of two missiles striking a U.S. warship near Jask Island, escalating Persian Gulf tensions. The S&P 500 fell, while WTI crude surged past $105 as traders priced in risks to the Strait of Hormuz, a vital oil chokepoint. The U.S. Dollar Index gained on safe-haven flows.
The strike marks a potential escalation beyond previous incidents involving Iran’s Islamic Revolutionary Guard Corps and the U.S. Navy. Bitcoin remained stable above $66,000, reflecting limited spillover into crypto.
Investors are watching for further military actions, statements from President Donald Trump and Iranian leaders, and any diplomatic efforts. The probability of Strait of Hormuz traffic normalizing by June remains uncertain.