Geopolitical Tensions Flare as Iran Claims Closure of Strait of Hormuz

Wall Street indices ended the morning session narrowly mixed after an initial sell-off triggered by escalating tensions between Iran, Israel, and the United States. While the S&P 500 and Nasdaq managed to claw back early losses to trade near flat, the Dow Jones Industrial Average remained slightly in the red, down 65.34 points to 47,844.58. The volatility stems from accusations that the recent ceasefire in the Middle East has been violated. Iran's deputy foreign minister, Saeed Khatibzadeh, asserted that the Strait of Hormuz has been closed again, citing Israeli strikes in Lebanon as a grave violation of the agreement. This development has replaced previous market euphoria with renewed nervousness. The geopolitical shock sent U.S. crude oil futures spiking by more than 7%, reversing a significant portion of Wednesday's 16% decline. In the bond market, the benchmark ten-year Treasury yield rose 3.0 basis points to 4.321% as investors adjusted their positions. Sector performance was fragmented. Software and computer hardware indices slid 2.7% and 1.6% respectively, while utilities and retail stocks provided a hedge, gaining 1.8% and 1.6%. Global markets mirrored the caution, with the German DAX dropping 1.6% and Japan's Nikkei 225 sliding 0.7%. President Donald Trump reinforced a hardline stance via Truth Social, stating that U.S. military forces will remain in the region until a comprehensive agreement is reached and fully complied with.