US equity markets reversed earlier gains to close in negative territory as geopolitical tensions in the Middle East intensified.
The sell-off was driven by reports that Iran has moved to restrict maritime access in the Strait of Hormuz, a critical chokepoint for global energy supplies.
According to Iranian state media outlet Fars News, vessels linked to the United States and Israel will no longer be permitted to pass through the strait.
The announcement marks a significant escalation in hostilities, raising immediate concerns about the security of oil shipments and the potential for broader regional conflict.
The threat to shipping routes sent energy prices sharply higher, with Brent crude climbing as traders priced in the risk of supply constraints.
Meanwhile, the prospect of heightened geopolitical instability weighed heavily on risk assets, prompting investors to retreat from equities.