Iran launched missile and drone strikes on two US air bases in Jordan in retaliation for a US military attack on Larak Island near the Strait of Hormuz. The escalation has triggered immediate volatility in global markets, with Brent crude rising 1.08% to $89.05 per barrel.

Market Reaction

Global equities slid following the news. Late Sunday, Dow futures fell 75 points, or 0.14%, to 53,509.00. S&P 500 futures declined 19.25 points, or 0.25%, to 7,702.75. Nasdaq 100 futures slipped 98.25 points, or 0.33%, to 29,393.50.

Asian markets also traded lower. South Korea’s KOSPI fell 1.75% to 6,670.12, while Japan’s Nikkei 225 declined 1.61% to 65,334.40.

In commodities, WTI crude oil rose 0.90% to $84.15 per barrel. Natural gas futures fell 1.80% to $2.836 per MMBtu. The US dollar index stood at 99.615, down 0.06%.

Escalation Details

US forces struck two rocket launchers on Larak Island after spotting the Islamic Revolutionary Guard Corps preparing to fire rockets carrying sea mines into the Strait of Hormuz, according to CENTCOM spokesperson Capt. Tim Hawkins. The IRGC stated it retaliated by striking two US air bases in Jordan. Jordanian authorities reported intercepting and destroying eight missiles that entered its airspace, with no casualties or property damage.

The IRGC called the US strike a "strategic and deadly mistake" by the Trump administration, citing casualties among Iranian forces and civilians. This marks the first US attacks on Iranian targets since late July.

Strategic Context

The Strait of Hormuz remains a focal point of concern, handling roughly one-fifth of the world’s oil shipments. The Trump administration warned that any vessel laying new mines would be "immediately and systematically destroyed." CENTCOM stated it had cleared sea mines from international shipping routes in the strait. Washington and Tehran remain without active negotiations as regional efforts continue to restore maritime traffic.

Commodity ship transits through the Strait of Hormuz dropped to 5 daily over the weekend, according to data, marking a notable decline in traffic through one of the world's most strategically important maritime chokepoints.

Sharp drop in Hormuz transit traffic

The Strait of Hormuz serves as a critical passage for global commodity shipments, including oil and liquefied natural gas. The weekend data showing only 5 commodity ships transiting daily underscores a significant reduction in vessel movement through this corridor.

The data does not specify the types of commodities carried by the vessels counted, nor does it provide a prior-period comparison figure to quantify the scale of the decline relative to a baseline.