The volatility follows a volatile weekend where military confrontation between Washington and Tehran reached a new threshold. While the U.S. military maintains that the Strait of Hormuz remains navigable, Iran has declared the critical maritime chokepoint closed to traffic. This conflicting narrative has left global markets scrambling to price in the risk of sustained supply chain paralysis.

Energy analysts at ING warn that the current trajectory mirrors the early intensity of the conflict, with regional energy infrastructure increasingly positioned in the crosshairs. With vessel transit through the strait slowed to a trickle, the prospect of prolonged supply tightness throughout the third quarter has triggered a sharp sell-off in equity and bond markets across Asia and Europe. ANZ analysts noted that previous assumptions of a quick resolution to regional skirmishes have largely evaporated, replaced by a grim outlook on the stability of energy flows from the Gulf.