Global Markets React to Tensions in Hormuz Strait and Trade Uncertainty

On March 4, U.S. President Donald Trump vowed to take decisive action regarding the situation in Iran, leading to a sharp decline in U.S. stock markets, with the Dow Jones Industrial Average plummeting nearly 1,300 points at one point. According to BlockBeats, Trump later announced insurance and escort measures for oil tankers passing through the Hormuz Strait, causing oil prices, the U.S. dollar, and U.S. Treasury yields to retreat from their highs, narrowing the losses in U.S. stock indices, although the Nasdaq still fell over 1%. Iran remains focused on the Hormuz Strait, with Iranian Revolutionary Guard Navy Deputy Commander Mohammad Akbarzadeh stating that the strait is under complete control of the Iranian navy, and several oil tankers have been hit by shells in the area. The probability of Iran closing the Hormuz Strait remains high on Polymarket. Additionally, Trump announced a trade embargo on Spain for refusing to support the U.S., raising concerns about trade uncertainty. Iran has reportedly chosen a successor for Supreme Leader Ayatollah Khamenei. According to the New York Times, three Iranian officials familiar with the discussions revealed that Khamenei's son, Mojtaba, is the leading candidate for the position. Officials noted that the Assembly of Experts is considering announcing Mojtaba as the successor on Wednesday morning, although some express reservations, fearing he could become a target for the U.S. and Israel. In the Asia-Pacific early trading session, stock markets in Japan and South Korea experienced significant declines. As of the time of reporting, South Korea's KOSPI index fell by 6%, and KOSPI 200 index futures dropped by 5%, triggering a five-minute pause in program trading. Japan's Nikkei 225 index fell below 55,000 points, with a daily decline of 2.31%. Cryptocurrency markets saw a slight rebound overnight, with Bitcoin currently priced at $68,151.61, reflecting a 24-hour increase of 0.64%. Ethereum remains relatively weaker, currently priced at $1,981, with a 24-hour increase of 0.61%.