Traders Brace for Renewed Turmoil on Hormuz Standoff
Bloomberg.com • • business
Key Points:
- Traders are bracing for a volatile start to the week due to renewed tensions around the Strait of Hormuz, which had previously been easing and helped push the S&P 500 to record highs and oil prices near $90 a barrel.
- Iran warned that any ships approaching the Strait "under any pretext" would be considered in violation of the ceasefire, with its Revolutionary Guard Corps firing on commercial vessels, increasing uncertainty for tanker operators.
- The situation reversed signs of a thaw seen on Friday, which had sparked a broad rally in risk assets, as Iran's Tasnim news agency announced it would skip a second round of US-Iran talks in Islamabad amid the ongoing American naval blockade.
- Communication between the US and Iran continues through intermediaries, but the standoff remains unresolved, contributing to market unease at the start of the week.
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