The U.S. and Iran continue trading blows in the Gulf, triggering turmoil in global financial markets. Oil prices jumped more than 4%, while gold plunged and Asian stock markets posted sharp losses. Tehran claims it has closed the Strait of Hormuz, but President Donald Trump insisted the critical shipping lane remains open, with American officials reporting that 20 ships crossed the strait in the last 24 hours.
Overnight, American forces launched a fresh wave of strikes against Iran, while the Revolutionary Guards fired ballistic missiles, cruise missiles, and drones at U.S. bases in neighboring countries. Tehran declared that the latest strikes “thwarted all diplomatic efforts of recent months.” Trump announced Wednesday that the ceasefire had ended, while mediators from Qatar and Pakistan are now trying to salvage the deal and bring both sides back to the negotiating table.
The security developments are immediately impacting the global economy. Brent crude rose 4.2% to $79.18 per barrel in early London trading, while gold dropped 1.5% to $4,060 per ounce. Asian stock indices posted significant losses: Japan’s Nikkei fell 2.1%, Hong Kong’s Hang Seng dropped 0.1%, China’s CSI 300 plunged 1.78%, and South Korea’s KOSPI crashed nearly 10%.