Markets Adjust as U.S. Blockade Raises Crude Prices Over 55%

The U.S. blockade of the Strait of Hormuz has caused crude prices to surge over 55%, leading to rising bond yields and a firmer U.S. dollar, which gained about 1.4% since the commencement of conflict. Equities fell modestly, with major Asian benchmarks down around 1%, reflecting a more restrained market reaction to geopolitical risks. Spot gold prices decreased by 0.5%, settling at $4,720.28 per ounce. Analysts suggest that investors are becoming accustomed to geopolitical shocks, with indications that market volatility may be easing as seen with the VIX adjustment recently.