On Monday, Iran stated that it would reopen the Strait of Hormuz only after the U.S. first lifts sanctions and provides compensation, among other conditions, and refused to negotiate directly with the U.S.; U.S. President Trump, meanwhile, demanded compensation from Iran and has instructed his representatives to explicitly include this demand in all future negotiations.
The U.S. Dollar Index rebounded from a two-week low, ultimately closing up 0.01% at 99.81; the benchmark 10-year U.S. Treasury yield closed at 4.7130%, while the 2-year U.S. Treasury yield, which is sensitive to the Federal Reserve’s policy rate, closed at 4.2430%.
Spot gold extended its gains, hitting a nine-week high during the session, and ultimately closed up 1.11% at $4,390.26 per ounce; spot silver closed up 3.38% at $65.73 per ounce.
International oil prices surged on news regarding the prospects of a shipping agreement in the Strait of Hormuz. WTI crude oil returned to above $80, ultimately closing up 6.72% at $81.48 per barrel; Brent crude oil closed up 6.71% at $86.96 per barrel.
U.S. stocks closed with the Dow Jones Industrial Average down 0.1%, the S&P 500 down 0.06%, and the Nasdaq down 0.32%. Apple (AAPL.O) fell 1.5%, while SpaceX (SPCX.O) rose 4%.SK Hynix (SKHY.O) fell 1.9%, and Intel (INTC.O) fell 4%. The Nasdaq Golden Dragon China Index closed up 1.65%, with Alibaba (BABA.N) rising 3%.