Trump Reinstated The Blockade Of Iranian Vessels In The Strait Of Hormuz

On Monday, US stock indices declined. By the end of the day, the Dow Jones index (US30) fell by 0.26%. The S&P 500 index (US500) declined by 0.79%. The tech‑heavy Nasdaq (US100) closed Monday in the red at 1.55%. The main reason for the sell‑off in the tech sector was investor concern over potential cuts in capital expenditures on artificial‑intelligence infrastructure by major hyperscale companies. Against this backdrop, shares of key semiconductor manufacturers – including Nvidia, AMD, Broadcom, Intel, and Micron – ended the day with significant losses, while SK Hynix ADRs fell 8.6% following pessimistic analyst forecasts. Additional pressure on the broader market came from geopolitical tensions triggered by President Trump’s decision to reinstate the blockade of Iranian vessels in the Strait of Hormuz. This led to rising energy prices, falling US Treasury bond prices, and heightened inflation fears.

European indices closed higher on Monday. By the end of the day, Germany’s DAX (DE40) rose by 0.19%, France’s CAC 40 (FR40) closed up 0.31%, Spain’s IBEX 35 (ES35) fell by 0.25%, and the UK’s FTSE 100 (UK100) closed down 0.25%.

On Tuesday, crude oil prices (WTI) exceeded $79 per barrel, showing a weekly gain of more than 10%. The main catalyst was President Donald Trump’s decision to reinstate the blockade of Iranian vessels in the Strait of Hormuz and to introduce a 20% compensation fee on all cargo passing through the corridor. The escalation of the conflict between Washington and Tehran – accompanied by mutual military actions – intensified concerns about the stability of energy supplies. The situation was further complicated by news that President Trump intends to support a bill imposing sanctions on buyers of Russian oil and gas.

On Monday, Japan’s Nikkei 225 (JP225) fell by 2.77%, China’s FTSE China A50 (CHA50) closed down 1.39%, Hong Kong’s Hang Seng (HK50) declined 0.11%, and Australia’s ASX 200 (AU200) closed down 0.07%. On Tuesday, the Hang Seng index lost 1.0% amid a generally negative backdrop across Asian markets and rising geopolitical tensions. Investor confidence was undermined by a decline in US futures and an overnight correction on Wall Street following President Trump’s decision to reinstate the blockade of Iranian vessels in the Strait of Hormuz. These developments triggered a rise in energy prices and pushed market participants toward risk‑avoidance strategies, favoring defensive assets.

The offshore yuan (CNY) held near 6.78 per dollar as market participants assessed mixed signals about China’s economic outlook. GDP growth in the second quarter is expected to slow to 4.5% year‑on‑year, matching the lower bound of the official target range for 2026. Key constraints remain weak domestic demand, the property‑sector crisis, and low private‑investment activity. At the same time, external trade delivered unexpectedly strong results: in June, exports reached a record $412.4 billion, while imports totaled $286.8 billion, pushing the trade surplus to $125.6 billion. Strong global demand for semiconductors and artificial‑intelligence equipment supported trade flows, partially offsetting domestic economic challenges.

On Tuesday, the New Zealand dollar (NZD) reached a four‑week high, rising to $0.578. The currency’s strength was driven by expectations of more aggressive rate hikes by the Reserve Bank of New Zealand (RBNZ), reinforced by comments from Chief Economist Paul Conway. He emphasized the need to keep inflation expectations under control and noted that the current Middle East conflict may force the regulator to take more decisive action. Markets now price an 80% probability of a rate hike in September, expecting rates to reach at least 3.0% by year‑end.

• S&P 500 (US500) 7,515.34 -60.05 (-0.79%)

• Dow Jones (US30) 52,498.64 -138.37 (-0.26%)

• DAX (DE40) 25,114.25 +47.16 (+0.19%)

• FTSE 100 (UK100) 10,498.29 +1.00 (+0.01%)

• USD Index 101.16 -0.08 (-0.08%)

News feed for: 2026.07.14

• Australia NAB Business Confidence (m/m) at 04:30 (GMT+3) – AUD (LOW)

• China Trade Balance (m/m) at 06:00 (GMT+3) – CHA50, HK50 (MED)

• UK BOE Gov Bailey Speaks at 11:45 (GMT+3) – GBP (LOW)

• US Consumer Price Index (m/m) at 15:30 (GMT+3) – USD (HIGH)

• US Fed Chairman Warsh Testifies at 17:00 (GMT+3) – USD (HIGH)