Key facts
- Crude oil prices surged following U.S. airstrikes on Iranian targets and subsequent Iranian retaliation.
- Iran claimed to have closed the Strait of Hormuz, a critical shipping lane, though the U.S. disputed this.
- Tanker traffic through the Strait of Hormuz fell to a five-week low.
- Global stocks and U.S. stock futures declined, with tech and semiconductor stocks particularly affected.
- South Korea's KOSPI index, heavily weighted with chipmakers, slumped nearly 9% and entered bear market territory.
- SK Hynix, a major memory chipmaker, saw its U.S.-listed shares fall over 15%.
Crude oil prices surged and global stocks showed weakness as tensions escalated in the Middle East following U.S. airstrikes on Iranian targets and subsequent Iranian retaliation. Iran claimed it had closed the Strait of Hormuz, a critical chokepoint for global oil supplies, although the U.S. disputed this assertion. Tanker traffic data indicated a significant drop in transits through the strait, reaching a five-week low.
In equity markets, semiconductor stocks extended recent losses, with South Korea's KOSPI index, heavily weighted with chipmakers, slumping nearly 9% and entering bear market territory. SK Hynix, a major memory chip manufacturer, saw its U.S.-listed shares plunge over 15%. Global equities and U.S. stock futures were trading lower, reflecting cautious investor sentiment ahead of key second-quarter earnings reports and U.S. inflation data.
Europe is expected to face a substantial jet fuel supply deficit in the third quarter, according to consultancy Energy Aspects, with inventories significantly lower than in the U.S. and Asia-Pacific.