Update: US Equity Indexes Slump, Crude Oil Soars as Trump Plans to Reinstate Iran Blockade, Impose 20% Toll on Hormuz Cargo
(Updates with index/price moves, analyst comments, and geopolitical news from the first paragraph.) US equity indexes fell as President Donald Trump's plan to reinstate a blockade on Iranian ships transiting the Strait of Hormuz, while proposing a toll for providing "safety and security" to cargo crossings in the chokepoint, triggered a rally in crude oil prices. The Nasdaq Composite dropped 1.6% to 25,873.18, with the Dow Jones Industrial Average down 0.3% to 52,498.64 and the S&P 500 lower by 0.8% to 7,515.34 on Monday. Technology led decliners, down 2.1% while energy topped advancers with a gain of 3.2%. Chevron (CVX) was the Dow's second-biggest gainer, up 3.3%. The CBOE Volatility Index, also known as the fear gauge, soared 14% to 17.16. The front-month global benchmark North Sea Brent surged 9.7% to $83.41 a barrel as tensions with Iran escalated when Washington and Tehran ought to be engaged in negotiations to reach a final peace agreement within the 60 days allocated for such talks as part of the June 21 interim deal. The US West Texas Intermediate soared 9.5% to $78.16 a barrel. "We are reinstating the IRANIAN BLOCKADE," Trump said in a Truth Social post on Monday,.
(Updates with index/price moves, analyst comments, and geopolitical news from the first paragraph.) US equity indexes fell as President Donald Trump's plan to reinstate a blockade on Iranian ships transiting the Strait of Hormuz, while proposing a toll for providing "safety and security" to cargo crossings in the chokepoint, triggered a rally in crude oil prices.
The Nasdaq Composite dropped 1.6% to 25,873.18, with the Dow Jones Industrial Average down 0.3% to 52,498.64 and the S&P 500 lower by 0.8% to 7,515.34 on Monday.
Technology led decliners, down 2.1% while energy topped advancers with a gain of 3.2%.
Chevron (CVX) was the Dow's second-biggest gainer, up 3.3%.
The CBOE Volatility Index, also known as the fear gauge, soared 14% to 17.16.
The front-month global benchmark North Sea Brent surged 9.7% to $83.41 a barrel as tensions with Iran escalated when Washington and Tehran ought to be engaged in negotiations to reach a final peace agreement within the 60 days allocated for such talks as part of the June 21 interim deal.
The US West Texas Intermediate soared 9.5% to $78.16 a barrel. "We are reinstating the IRANIAN BLOCKADE," Trump said in a Truth Social post on Monday,.