Dow Jones Muted as U.S.-Iran Hormuz Tensions Ramp

The Dow Jones (DJIA) is set to open Wednesday virtually unchanged as the U.S. and Iran continue to quarrel over the Strait of Hormuz.

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President Trump has informed aides of his intention to continue blocking ships entering and exiting Iranian ports, blocking off Iran from exports, officials told The Wall Street Journal. He reasoned the measure was less risky than resuming attacks against Iran or sending U.S. troops directly there.

U.S.-Iran Tensions Elevate ahead of Fed Meeting

On the other side, Iran has warned of “unprecedented military action” if the U.S. continues to seize vessels linked to Iran, according to the state-run Press TV.

“Iran can’t get their act together. They don’t know how to sign a nonnuclear deal. They better get smart soon!” Trump said in a Truth Social post.

Elsewhere, investors are preparing for the Fed interest rate decision at 2 p.m. Eastern Time today. The central bank is expected to hold rates steady amid inflation risks from surging oil and gas prices.