Oil prices jumped sharply, the US dollar rebounded, and global markets turned cautious on Monday due to renewed tensions in Iran disrupting shipping through the Strait of Hormuz. Brent crude rose about 6 percent to around $96 a barrel, while the dollar index climbed to a one-week high as investors sought safer assets. S&P 500 futures fell about 0.7 percent, and Asian markets showed mixed results, indicating a shift in risk sentiment.
Shipping through the Strait of Hormuz has slowed significantly, with Iran re-imposing a de facto closure of the route. More than 20 vessels carrying oil, gas, metals, and fertilizer transited the strait on Saturday, the highest since March 1. Despite the rise in oil prices and safe-haven demand, analysts noted that markets were not yet positioning for a prolonged disruption.
The dollar index rose as much as 0.3 percent to 98.485, reversing previous losses. The latest tensions arise just ahead of a ceasefire linked to the Iran conflict, which is due to run until Tuesday. Investors are monitoring Gulf shipping flows as a signal of supply disruption amid a busy week of global economic data.
