The Strait of Hormuz remains a vital maritime chokepoint and serves as the primary artery linking the Persian Gulf to international energy markets. With approximately 20% of global oil and gas shipments transiting this waterway, it is the backbone of energy security for Asia, Europe, and beyond.
Geopolitical deadlock remains the primary driver of market activity on Monday. With the Strait of Hormuz effectively closed for its 11th week, the breakdown in diplomatic talks between Washington and Tehran has sent energy prices climbing and strengthened the U.S. dollar as a liquidity safe haven.
The continued closure of the world’s most strategic maritime chokepoint, has pushed prices toward psychological resistance levels.
Brent Crude: Rose 4.3% to $105.47 per barrel.
U.S. Crude (WTI): Climbed 4.7% to $99.92 per barrel.
Analysts at JPMorgan warn that while current prices are a "headwind," the market will enter a period of "operational stress" by June if the blockade persists.
The U.S. dollar has benefited from its status as the primary global liquidity currency during times of high-intensity conflict.
USD/JPY: The dollar rose 0.33% to 157.16. Japan is banking on a hawkish Bank of Japan and support from U.S. Treasury Secretary Scott Bessent to curb the yen's weakness.
EUR/USD: The euro slipped 0.24% to $1.1757, reflecting Europe's vulnerability as a major energy importer.
Gold: Despite the crisis, gold fell 0.5% to $4,690 an ounce, as investors prioritised cash over traditional hedges.
While broader global indices showed signs of instability, specific sectors in Asia managed to post significant gains.
South Korea (KOSPI): Jumped 4%, led by heavy gains in artificial-intelligence-linked chipmakers.
China (CSI300): Rose 1.4%, even as data showed producer prices hitting a 45-month high due to energy costs.
Japan (Nikkei): Fell 0.36%, erasing earlier gains as the cost of energy imports weighed on sentiment.
U.S. Futures: S&P 500 and Nasdaq futures edged down slightly (0.1% and 0.05%) following record highs last week.
The conflict: War broke out in late February between Iran and the U.S.-led alliance.
The standoff: President Trump has rejected Tehran’s counter-proposal, which demanded an end to the war, lifting of sanctions, reparations, and formal recognition of their control over the waterway.
The next move: Global attention turns to the upcoming meeting between President Trump and President Xi Jinping in China. Gulf security, trade, and artificial intelligence (AI) are expected to dominate the discussion.
Supply Risk: The 11-week closure of the Strait is now the dominant factor in price formation.
Inflationary Pressure: Rising energy costs are manifesting in Chinese producer and consumer inflation data.
Regional Vulnerability: Japan and Europe are the most economically exposed due to their reliance on oil imports.
Liquidity Preference: Markets are currently favouring the U.S. dollar over gold as a risk-off asset.
U.S. President Donald Trump said Washington has agreed to resume talks with Iran after Tehran requested further negotiations, but declared that last m...
What began as a fan-created chant just months ago has become one of the defining images of this year's FIFA World Cup, with Norway's "Viking Row" swee...
Russia’s fuel shortages are spreading into Central Asia, exposing the region’s heavy reliance on Russian petrol and diesel as governments race to ...
U.S. President Donald Trump said Washington has agreed to resume talks with Iran after Tehran requested further negotiations, but declared that last month's ceasefire between the two countries was "over".
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 10th of July, covering the latest developments you need to know.
It has been a punishing week for large parts of China, and forecasters warn the worst may not be over. After Typhoon Maysak left a trail of destruction and at least 23 people dead, Super Typhoon Bavi is now threatening the country's eastern coast.
At least 12 people have been killed in forest fires in Almeria in southern Spain, Andalucía’s emergency agency has said, as firefighters continue efforts to put out the blaze.
The death toll from Venezuela's twin earthquakes has risen to 3,811, according to figures released by National Assembly President Jorge Rodriguez on Wednesday.
U.S. President Donald Trump said Washington has agreed to resume talks with Iran after Tehran requested further negotiations, but declared that last month's ceasefire between the two countries was "over".
The U.S. military said on Wednesday it launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping, triggering Iranian attacks on Kuwait and Bahrain in the latest escalation to derail efforts to end the war.
China has approved fast-fashion retailer Shein's long-awaited initial public offering (IPO) in Hong Kong, clearing the way for the company to pursue a stock market listing after previous attempts in the U.S. and London failed.
European carmakers have urged the European Union to make sure new “Made in EU” rules do not put existing investments in Türkiye and Morocco at risk.
Microsoft is expected to announce a new round of job cuts as early as next week as the technology giant looks to reduce costs, according to reports.
A Swedish court has ordered Alphabet-owned Google to pay about $1.5 billion in antitrust damages to price comparison platform PriceRunner, in one of Europe's largest competition-related awards against a major technology company.
U.S. President Donald Trump earned more than $1bn from cryptocurrency-related business ventures last year, according to his mandatory 2025 financial disclosure.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment