Lates News

Traders are gearing up for a turbulent start to the week as the ongoing stand-off around the Strait of Hormuz has reignited uncertainty that Wall Street was eager to overlook. President Trump's announcement last Friday that a deal with Iran was almost finalized sparked market euphoria, with the S&P 500 index rising over 3% for the third consecutive week, expected to post its largest monthly gain since 2020. The dollar erased all gains made after the outbreak of war, while Brent crude oil plummeted and US bonds rose. However, over the weekend, Iran once again closed the Strait of Hormuz and threatened to not participate in talks in Pakistan. Trump then threatened to destroy all of Iran's power plants and bridges if negotiations failed. This sudden turn of events reflects that last week's rebound was largely based on hope rather than a solution. Martin Henneck, head of investment consulting at St. James's Place, said, "It seems investors celebrated too early," and the weekend situation "could lead to a pullback in recent market gains in the short term." In early Asian trading on Monday, the dollar strengthened against major currencies, with the Australian dollar seeing the largest decline among risk-sensitive currencies.