U.S. stocks fell sharply and oil prices jumped Monday after President Donald Trump announced the reimposition of a naval blockade against Iran, demanding a 20 percent levy on all cargo transiting the Strait of Hormuz.
The escalation followed a third consecutive night of U.S.-Iran mutual strikes since the ceasefire collapsed. The Islamic Revolutionary Guard Corps claimed attacks on U.S. military facilities in Bahrain and Kuwait, along with radar systems in Oman and depots in Jordan, while Washington struck military bases in southern Iran.
The technology-heavy Nasdaq tumbled 1.4 percent, dragged down by heavy losses across semiconductor stocks including Micron, AMD, and Seagate, while the Dow Jones closed down 0.5 percent at 52,384 points. Brent crude surged nearly 4.4 percent, and European natural gas jumped 3.4 percent on supply fears. Markets are now bracing for fresh U.S. consumer price data due Tuesday, with inflation already having climbed to 4.2 percent in May.