Global stocks retreated and oil prices surged after Iranian state television reported that seven oil tankers were damaged and had caught fire in the Strait of Hormuz, a critical passageway for global energy supplies.
The report immediately sparked fears of a significant disruption to the global energy market, pushing Brent crude, the international benchmark, up more than 3%. This spike in energy costs is fueling concerns about renewed inflationary pressures and a potential slowdown in the global economy, leading investors to move away from riskier assets like stocks.
Market Impact: The S&P 500 fell 0.75% and the Nasdaq Composite dropped 1.38%, while the Dow Jones slid 0.14%. Bitcoin declined 3.28% since last session close.