{"id":64654,"date":"2026-07-12T09:38:15","date_gmt":"2026-07-12T13:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-volatility-as-iran-closes-strait-of-hormuz-following-u-s-strikes\/64654\/"},"modified":"2026-07-12T09:38:15","modified_gmt":"2026-07-12T13:38:15","slug":"global-markets-brace-for-volatility-as-iran-closes-strait-of-hormuz-following-u-s-strikes","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-volatility-as-iran-closes-strait-of-hormuz-following-u-s-strikes\/64654\/","title":{"rendered":"Global Markets Brace for Volatility as Iran Closes Strait of Hormuz Following U.S. Strikes"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Iran has officially closed the Strait of Hormuz<\/strong> &quot;until further notice,&quot; blocking a waterway that handles approximately <strong>20% of global oil and liquefied natural gas (LNG)<\/strong> trade.<\/li>\n<li><strong>U.S. Central Command (CENTCOM)<\/strong> launched a massive third wave of strikes against <strong>140 Iranian military targets<\/strong> in response to attacks on commercial shipping, effectively ending a months-long ceasefire.<\/li>\n<li><strong>Energy markets are on high alert<\/strong> as Brent Crude (<a href=\"\/stock\/LCO\">LCO<\/a>) and Natural Gas (<a href=\"\/stock\/NG\">NG<\/a>) prices face upward pressure due to the disruption of one of the world&#39;s most critical maritime chokepoints.<\/li>\n<li><strong>Regional instability has spiked<\/strong> with Iran launching retaliatory missile and drone strikes against U.S. military facilities in <strong>Jordan, Kuwait, Bahrain, Qatar, and Oman<\/strong>.<\/li>\n<li><strong>Diplomatic mourning periods<\/strong> have been declared across the Gulf following the death of Qatar\u2019s Father Amir, Sheikh Hamad bin Khalifa Al Thani, adding a layer of regional transition during the crisis.<\/li>\n<\/ul>\n<h2>Escalation in the Strait of Hormuz<\/h2>\n<p>The <strong>Iranian Hormuz Strait Management Authority<\/strong> announced on Sunday that passage through the strategic waterway is no longer possible, citing &quot;illegal U.S. maneuvers&quot; and military intervention. This declaration follows a sharp escalation where the <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> fired warning shots at a container ship, the <em>M\/V GFS Galaxy<\/em>, disabling the vessel and leaving one crew member missing.<\/p>\n<p>In immediate retaliation, the United States launched heavy missile and drone assaults on Iranian air surveillance radars, drone storage facilities, and launch sites. President <strong>Donald Trump<\/strong> has declared the end of the ceasefire that had been in place since June 17, though he noted that the door remains open for continued negotiations if Tehran renounces its attacks on commercial shipping.<\/p>\n<h2>Regional Leaders Seek Stability Amid Conflict<\/h2>\n<p>Against the backdrop of military escalation, UAE President <strong>Sheikh Mohamed bin Zayed Al Nahyan<\/strong> met with Egyptian President <strong>Abdel Fattah El-Sisi<\/strong> in Al-Alamein to discuss the deteriorating regional security situation. The two leaders emphasized the &quot;vital necessity&quot; of close coordination to prevent further escalation and to safeguard the stability of the Middle East.<\/p>\n<p>The meeting highlights the growing concern among Arab nations as the conflict between Washington and Tehran begins to spill over into neighboring territories. Iran\u2019s latest barrage of strikes targeted U.S. radar sites and maintenance centers in <strong>Kuwait<\/strong> and <strong>Qatar<\/strong>, marking the first time some of these nations have been directly involved in the current cycle of violence.<\/p>\n<h2>Market Implications and Energy Security<\/h2>\n<p>The closure of the <strong>Strait of Hormuz<\/strong> represents a significant threat to global energy security, as it is the primary artery for oil exports from the Persian Gulf. <em>Market analysts warn that a prolonged closure could lead to a sharp spike in global energy prices<\/em>, impacting everything from transportation costs to industrial production.<\/p>\n<p>While the <strong>U.S. Central Command<\/strong> maintains that some commercial traffic is still attempting to flow, the Iranian authority has stated that all requests for passage will only be reviewed once &quot;stability and calm are restored.&quot; This uncertainty is expected to drive up insurance premiums for maritime shipping and force tankers to consider significantly longer, more expensive routes around the Cape of Good Hope.<\/p>\n<h2>Regional Transition: Death of Qatar\u2019s Father Amir<\/h2>\n<p>The geopolitical crisis coincides with a period of national mourning in the Gulf. The <strong>Bahrain News Agency<\/strong> reported that the Royal Court has announced official mourning and the flying of flags at half-mast following the death of <strong>His Highness Sheikh Hamad bin Khalifa Al Thani<\/strong>, the Father Amir of Qatar.<\/p>\n<p>Qatar has declared a four-day mourning period, suspending work in government departments until July 19. Sheikh Hamad, who ruled from 1995 to 2013, was the architect of modern Qatar\u2019s massive expansion in the <strong>LNG<\/strong> market, making the current threat to the Strait of Hormuz particularly poignant given his legacy of transforming the nation into a global energy powerhouse.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Iran has officially closed the Strait of Hormuz &quot;until further notice,&quot; blocking a waterway that handles approximately 20% 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