The S&P 500 (SPX) opened Monday’s trading session in the red ahead of President Trump’s upcoming blockade of the Strait of Hormuz.
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Trade QQQ with leverageAfter the U.S. and Iran failed to reach a resolution over the weekend in Islamabad, Trump announced that the U.S. would blockade the global oil chokepoint, effective at 10 a.m. Eastern Time today. The U.S. military later clarified that the blockade would only affect vessels entering and exiting Iranian ports.
U.S. Blockade Pressures Iran ahead of Ceasefire Deadline
The blockade is meant to cut off Iran from oil exports, cutting off a major source of revenue and putting pressure on the country to return to talks. Iran labeled the move as an act of escalation ahead of the ceasefire expiration on April 22 and threatened to target shipping ports in and around Hormuz.
Meanwhile, the U.S. has begun the arduous task of clearing mines placed by Iran in the passageway. Iran has lost track of where the mines are placed and does not have the necessary resources to remove the mines themselves, U.S. officials told the New York Post.