Markets shudder as Strait of Hormuz starts resembling a combat zone. ‘We’re prepared to subject you to disabling fire’

Stock futures tumbled and oil prices jumped on Sunday after hopes that the Strait of Hormuz would fully reopen were deflated over the weekend by renewed gunfire.

Futures tied to the Dow Jones industrial average fell 407 points, or 0.82%. S&P 500 futures were down 0.67%, and Nasdaq futures lost 0.57%.

U.S. oil futures jumped 7.14% to $89.94 a barrel, and Brent crude climbed 5.9% to $95.71. Gold fell 1.6% to $4,801.40 per ounce.

The U.S. dollar was up 0.2% against the euro and rose 0.25% against the yen. The yield on the 10-year Treasury was flat at 4.248%.

On Friday, President Donald Trump and Iran’s foreign minister announced that ship traffic in the narrow waterway was completely free, sinking oil prices and triggering a massive stock rally that sent the S&P 500 to fresh highs.

But Trump also said the U.S. naval blockade on Iran would remain in place until a deal is finalized, and the Islamic Revolutionary Guard Corps said it still controls the strait.

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