US stock markets saw significant losses on Monday. By the close in New York, the Dow Jones Index had fallen by 1.1% from the previous day, settling at 48,942 points. Earlier reporting showed the broader S&P 500 down 0.4% to 7,201 points, while the technology-focused Nasdaq-100 traded down 0.2% at approximately 27,652 points.
These downturns were attributed to escalating tensions in the Strait of Hormuz. The situation remains unpredictable, partly due to conflicting statements among the involved parties. The United States began escorting commercial vessels through the narrow waterway under “Project Freedom” an action viewed by Iran as a violation of a ceasefire. Reports detail an alleged Iranian strike on a US patrol boat and the repulsion of a US warship. Furthermore, the United Arab Emirates reported that Iran hit oil tankers and the crude export complex located in Fujairah.
In shifts away from equity indexes, the price of oil saw a strong increase. A barrel of North Sea Brent crude rose to $114.10 USD on Monday evening (CEST), marking a 5.5% jump compared to the previous trading day’s close.
Conversely, gold prices were in sharp decline. By the evening, a fine ounce of gold was priced at $4,519 USD, a decrease of 2.1%, equating to 124.23 Euro per gram.
Finally, the European exchange rate weakened on Monday evening. The Euro cost $1.1696 USD, meaning the dollar was valued at 0.8550 Euros.