Hormuz Conflict Shakes Market Confidence
Oil prices rise but markets remain calm despite ongoing conflict.
1Market Calm
U.S. stock futures dipped late Sunday while oil prices rose, but didn't spike. Investors remained calm despite new fighting in the Persian Gulf over the weekend.
2Oil Prices
U.S. crude oil futures rose 3.2% to $73.70 a barrel. Brent crude also climbed 3.2% to $78.45. Gold prices, however, dropped 0.7% to $4,085 per ounce.
3Operational Tempo
U.S. Central Command announced new strikes on Iran, marking the fifth round of attacks in the past week and the third in the last 24 hours. The tempo of operations is quickening.
4Iran's Strategy
Iran has paired its attacks on commercial ships with salvos against its Gulf Arab neighbors. Iran claims the agreement signed with the U.S. gives it authority to regulate ship traffic.
5U.S. Response
The U.S. demanded full restoration of freedom of navigation in Hormuz and established an alternate corridor hugging Oman's coast. Since early May, U.S. forces have assisted over 800 commercial vessels.
6Conflict Impact
As Iran seeks to preserve its main leverage, skirmishes are becoming increasingly violent. Experts warn that this could escalate into an undeclared naval war.
Original article: Fortune | FORTUNE — Hormuz Çatışması Piyasa Güvenini Sarsıyor