Oil prices climbed and most Gulf stock markets closed higher after President Donald Trump threatened new economic sanctions against Iran's trading partners. The move follows Trump's claim that the Strait of Hormuz is "new US territory," a statement Iranian military official Mohsen Rezaei answered by vowing the waterway stays closed.
Oil prices rose and most Gulf stock markets closed higher on Sunday as Trump's threat of economic sanctions against Iran's trading partners raised expectations of tighter crude supplies. Trump wrote on Truth Social that the Strait of Hormuz is "new US territory". Iranian military official Mohsen Rezaei responded that the strait remains closed until the U.S. changes its behavior.
The exchange happened ahead of Monday's planned announcement of new U.S. sanctions, which could affect Iran and major trading partners including China. Markets appear to read the standoff as lowering the chance of a U.S.-Iran deal restoring normal Strait of Hormuz traffic by August 31, and Polymarket odds for that outcome dropped from 3% to 2.5% over the past 24 hours. U.S. Central Command and Iranian maritime authorities remain critical players in the standoff, and their actions may further influence market expectations.
Brent crude settled at $94.39 a barrel on Friday. Saudi Arabia's benchmark index gained 1.1% to 11,079, and among advancers, National Shipping Company of Saudi Arabia surged 9.5% to 37.30 riyals per share, its highest closing level in two decades.
Qatar's benchmark index edged up 0.1% to 9,688. Egypt's blue-chip index closed 1.1% higher at 55,350. Elsewhere, Kuwait's index rose 0.8% to 9,309, Bahrain's index ended flat at 1,944, and Oman's index fell 0.2% to 7,509.
Traders now weigh the geopolitical risk around the strait against Monday's sanctions announcement as the next catalyst for crude oil.
Sources: Investing.com, Crypto Briefing
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