U.S. Navy blockade of Iranian ports sparked market volatility, but crude oil fell below $100 per barrel as investors bet on diplomatic resolution. The Strait of Hormuz tensions eased after Trump signaled ongoing negotiations with Tehran, sending U.S. stocks higher overnight. The S&P 500 rose 1% to its highest level since late February on optimism that a deal remains possible. West Texas Intermediate crude dropped 2.37% to $96.73, while Brent declined 1.82% to $97.51. BlackRock upgraded its U.S. stock outlook, citing contained war impacts and strong corporate earnings. However, geopolitical risks persist as the U.K. distanced itself from the blockade and reports suggest China may supply air-defense systems to Iran, potentially complicating U.S.-China relations and adding uncertainty to energy markets.
