Trump Reimposes 20% Hormuz Cargo Charge as Oil Jumps 9% and Nasdaq Drops 1.55%
Updated
Updated · CNBC · Jul 12
Trump Reimposes 20% Hormuz Cargo Charge as Oil Jumps 9% and Nasdaq Drops 1.55%
3 articles · Updated · CNBC · Jul 12
Summary
U.S. stocks fell after Trump said he was reinstating an Iran shipping blockade in the Strait of Hormuz and would charge 20% on all cargo for U.S. protection of the route.
Oil spiked on the escalation: WTI rose 9.4% above $78 a barrel and Brent gained 9.6% above $83, while the S&P 500 lost 0.79%, the Dow slipped 138 points and the Nasdaq dropped 1.55%.
The move followed a weekend exchange of U.S. and Iranian airstrikes after Tehran attacked a commercial vessel in the strait; Iran said Hormuz was closed, but Trump said commercial traffic was still moving.
Chip stocks led the selloff, with SK Hynix down 9%, Sandisk 12%, Intel 6% and AMD 4%, while major banks also weakened ahead of earnings.
Markets now turn to Tuesday's June CPI report and Fed Chair Kevin Warsh's testimony, with investors weighing Middle East risk against expectations for 23% second-quarter S&P 500 profit growth.