{"id":59326,"date":"2026-03-02T16:38:30","date_gmt":"2026-03-02T20:38:30","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/middle-east-conflict-escalates-iran-closes-strait-of-hormuz-as-oil-spikes-and-us-bases-face-attacks\/59326\/"},"modified":"2026-03-02T16:38:30","modified_gmt":"2026-03-02T20:38:30","slug":"middle-east-conflict-escalates-iran-closes-strait-of-hormuz-as-oil-spikes-and-us-bases-face-attacks","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-conflict-escalates-iran-closes-strait-of-hormuz-as-oil-spikes-and-us-bases-face-attacks\/59326\/","title":{"rendered":"Middle East Conflict Escalates: Iran Closes Strait of Hormuz as Oil Spikes and US Bases Face Attacks"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Iran&#39;s IRGC has declared the Strait of Hormuz closed<\/strong>, threatening to target any vessel attempting passage, which sent <strong>Brent Crude prices surging 6.68% to $77.74 per barrel.<\/strong><\/li>\n<li><strong>Geopolitical instability has triggered evacuations and attacks<\/strong>, with the <strong>U.S. State Department<\/strong> removing personnel from Jordan and Iraqi groups claiming strikes on <strong>U.S. bases in Kuwait.<\/strong><\/li>\n<li><strong>Eli Lilly (<a href=\"\/stock\/LLY\">LLY<\/a>)<\/strong> confirmed its weight-loss pill <strong>Orforglipron<\/strong> is on track for a <strong>Q2 U.S. market launch<\/strong> following an expected <strong>FDA approval in April.<\/strong><\/li>\n<li><strong>Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>)<\/strong> has suspended e-commerce operations and closed warehouses in <strong>Abu Dhabi<\/strong> as regional conflict disrupts logistics and cloud infrastructure.<\/li>\n<li><strong>Major U.S. stock indices<\/strong>, including the <strong><a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>)<\/strong> and <strong>Nasdaq 100 (<a href=\"\/stock\/QQQ\">QQQ<\/a>)<\/strong>, have slipped into negative territory as investors weigh the risks of a broader regional war.<\/li>\n<\/ul>\n<h2>Geopolitical Crisis and Energy Market Shock<\/h2>\n<p>Tensions in the Middle East reached a breaking point on Monday as the <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> announced the effective closure of the <strong>Strait of Hormuz<\/strong>. An IRGC adviser stated that Iran will not allow any oil to leave the region, warning that any ship attempting to pass through the vital maritime chokepoint will be targeted. This move follows the reported assassination of Iran\u2019s Supreme Leader and subsequent joint <strong>U.S.-Israeli military strikes<\/strong> known as <strong>Operation Epic Fury<\/strong>.<\/p>\n<p>Energy markets reacted violently to the news, with <strong>Brent Crude futures<\/strong> settling up <strong>$4.87 at $77.74 a barrel<\/strong>, while <strong>WTI Crude<\/strong> climbed above the <strong>$72 mark<\/strong>. Analysts warn that a prolonged closure of the Strait, which handles roughly 20% of global oil consumption, could push prices toward triple digits. <em>The sudden supply risk has overshadowed recent demand concerns, forcing a rapid repricing of energy assets across global desks.<\/em><\/p>\n<h2>Attacks on U.S. Bases and Diplomatic Evacuations<\/h2>\n<p>The conflict has rapidly expanded beyond Iran&#39;s borders, with <strong>Iraqi armed groups<\/strong> claiming responsibility for attacks on <strong>U.S. military bases in Kuwait<\/strong>. Air raid sirens were heard across <strong>Kuwait City<\/strong> early Monday, and the <strong>U.S. Embassy<\/strong> in Kuwait has issued a security alert urging citizens to shelter in place. Reports indicate that Kuwaiti air defenses intercepted several hostile aerial targets over central areas at dawn.<\/p>\n<p>Simultaneously, the <strong>U.S. State Department<\/strong> has ordered the temporary departure of all embassy personnel from the <strong>Amman compound in Jordan<\/strong> due to specific threats. This follows a series of regional retaliations where missiles and drones have entered Jordanian and Emirati airspace. <strong>Iran\u2019s Foreign Minister Abbas Araqchi<\/strong> told state media that while Tehran is not at war with regional neighbors, it will defend itself against the U.S., which he accused of &quot;betraying diplomacy.&quot;<\/p>\n<h2>Corporate Impact: Eli Lilly, Amazon, and Coinbase<\/h2>\n<p>Despite the geopolitical turmoil, <strong>Eli Lilly (<a href=\"\/stock\/LLY\">LLY<\/a>)<\/strong> provided a significant update on its pharmaceutical pipeline. The company&#39;s CFO, <strong>Lucas Montarce<\/strong>, stated that the oral weight-loss drug <strong>Orforglipron<\/strong> could reach the U.S. market as early as <strong>Q2 2026<\/strong> following an expected <strong>FDA approval on April 10<\/strong>. Montarce noted that the company is prepared to ship the pill to customers within approximately one week of receiving the regulatory nod.<\/p>\n<p>In contrast, <strong>Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>)<\/strong> has been forced to scale back its Middle Eastern footprint, closing fulfillment centers and suspending deliveries in <strong>Abu Dhabi<\/strong>. The decision comes amid reports that an <strong>Amazon Web Services (AWS)<\/strong> data center in the UAE was impacted by the conflict, causing localized power outages and connectivity issues. <em>The suspension is expected to significantly reduce network capacity for third-party sellers across the Gulf region.<\/em><\/p>\n<p>In the financial technology sector, <strong>Coinbase (<a href=\"\/stock\/COIN\">COIN<\/a>)<\/strong> alerted users to potential latency and degraded performance when transacting via its onramp using <strong>Apple Pay<\/strong>. Meanwhile, the aviation sector saw a temporary ground stop at <strong>Los Angeles International Airport<\/strong> after a <strong>United Airlines (<a href=\"\/stock\/UAL\">UAL<\/a>)<\/strong> <strong>Boeing (<a href=\"\/stock\/BA\">BA<\/a>)<\/strong> 787 was forced to return due to an engine issue, adding to a day of widespread operational disruptions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Iran&#39;s IRGC has declared the Strait of Hormuz closed, threatening to target any vessel attempting passage, which sent 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