Crude oil prices are climbing as traders continue to price in the security risks surrounding the Strait of Hormuz.
The waterway, which handles a significant portion of global oil flows, remains a focal point of market anxiety despite earlier hopes for a diplomatic resolution.
The AEX index is advancing toward the 1100-point level on Monday morning, suggesting that European equities are shedding some of the geopolitical risk premium that has weighed on them.
This divergence highlights the complex market reaction: while equity investors are cautiously optimistic about a potential de-escalation, energy markets remain focused on the immediate physical risks to supply.
The Strait of Hormuz is a critical chokepoint for global energy trade.
Any disruption to traffic through the strait can have immediate and significant impacts on oil prices and global supply chains.