Brent crude jumps to $86.36 after Trump announces 20% fee on Strait of Hormuz cargo traffic, pressuring equities.
World stocks turned lower as oil prices climbed to a one-month high following President Donald Trump’s threat to reinstate a U.S. blockade on Iranian shipping and impose a 25 basis point fee on Strait of Hormuz cargo traffic. Brent crude futures rose over $3.00 to $86.36 a barrel, the highest since mid-June.
The pan-European STOXX 600 index fell 0.7%, led by a 2.4% drop in travel and leisure stocks, as investors weighed escalating U.S.-Iran tensions against second-quarter earnings reports from companies like BP and Ericsson. MSCI’s global shares index also edged into negative territory after a volatile session in Asia.
Markets faced additional pressure from hawkish remarks by Federal Reserve Governor Christopher Waller, who suggested the central bank may raise interest rates soon if inflation remains above the 2% target.