The US began its blockade of the Strait of Hormuz on Monday, as Washington and Tehran threatened further escalation amid a shaky ceasefire.
US President Donald Trump vowed to obstruct all maritime traffic to and from Iranian ports, meaning Tehran could do “absolutely no business.”
He added that Iranian ships approaching the blockade would be “eliminated,” while Tehran pledged a “decisive” response to military vessels in the waterway.
The move sets up the “next great test” in the Iran war, The New York Times wrote: “Which side can endure more economic pain?”
Despite the possibility of military confrontation, investors appeared upbeat about the prospect of a peace deal: The S&P closed at its highest point since the war began.