Expiration of a 60-day diplomatic window on the Strait of Hormuz standoff sparks risk-off moves in equities and a bid in oil markets.
The Dow Jones Industrial Average fell nearly 200 points to 53,550, extending losses after a 60-day negotiating window on the Strait of Hormuz expired without a replacement deal. Markets opened lower and remained under pressure throughout the session, failing to recover from early declines.
The memorandum signed in June at Versailles set a two-month deadline, which passed with no extension or direct talks announced. Iran signaled a potential shift from defensive to offensive postures, while the U.S. warned Oman of military consequences for interference. Vessel traffic through the Strait dropped to three on Sunday, down from a pre-war average of 130.
West Texas Intermediate crude climbed toward $83.00 on the escalation, reflecting supply concerns amid heightened regional tensions.