Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are down by over 1.5% on the fourth day of the U.S.-Iran conflict.
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Forget margin or options. Here's how the pros trade QQQThe U.S. and Israel have continued to strike Iran, stoking fears of a prolonged conflict and disruptions to the Strait of Hormuz, which handles roughly 20% of global oil shipments. Bottlenecks to oil supply could increase oil prices and inflation. In addition, higher transportation costs could weigh on consumer sentiment and demand as households cut back on outings and discretionary spending.
Strait of Hormuz Ship Traffic Plunges 80%
On Monday, Iranian commander Ebrahim Jabari threatened to set any ship crossing the strait on fire. “The strait (of Hormuz) is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze,” he said.
Ship traffic through the passage has fallen by over 80% since the U.S. and Israel launched strikes against Iran over the weekend, according to data from Lloyd’s List Intelligence. Several shipping companies have already suspended operations in the strait.