Hormuz Shut Down | Oil Up 4% Weekly | Nasdaq Gains 1.74%

Market Overview

Geopolitical tensions between the United States and Iran escalated sharply over the weekend. Iran announced the closure of the Strait of Hormuz and banned all vessel traffic through the strategic waterway, while U.S. forces launched a new round of military strikes against Iranian targets. Irans Supreme Leader vowed retaliation, and President Trump stated that 1,000 missiles had been positioned against Iran. Shipping activity through the strait slowed significantly, with only 11 commercial vessels reportedly passing through within a 24-hour period.

U.S. equities ended Friday modestly higher, capping a solid week of gains. The S&P 500 rose 0.42% to 7,575.39, bringing its weekly gain to 1.23%. The Nasdaq Composite added 0.29% to 26,281.61, finishing the week up 1.74%. The Dow Jones Industrial Average gained 0.29% to 52,637.01, although it still posted a weekly decline of 0.50%.

NVIDIA surged 4% after management indicated during its roadshow that quarterly revenue could approach $100 billion.

Chinese technology and growth stocks reversed sharply after the previous sessions rally. The ChiNext Index plunged 4.37% to 3,842.73, while the Shanghai Composite fell 1.00% to 3,996.16, slipping back below the psychologically important 4,000-point level.

Precious metals retreated, with COMEX gold declining 0.64% to $4,104.10 per ounce.

Oil prices edged lower on Friday but still recorded strong weekly gains, ending a four-week losing streak. WTI crude for August delivery fell 0.93% to $71.41 per barrel but advanced 3.96% for the week. Brent crude slipped 0.38% to $76.01 per barrel while posting a weekly gain of 5.39%.

Bitcoin briefly climbed above $64,000 during intraday trading, reaching its highest level in more than two weeks. The offshore Chinese yuan strengthened past 6.78 per U.S. dollar intraday for the first time in over two weeks. Meanwhile, the benchmark 10-year U.S. Treasury yield stood near 4.56%, rising approximately 8 basis points over the week.

Market OutlookStrait of Hormuz Closure and Oil Market Implications

Iran‘s decision to close the Strait of Hormuz and halt maritime traffic has heightened concerns across global energy markets. The waterway handles roughly 20% of the world’s seaborne crude oil shipments, making it one of the most critical energy chokepoints globally.

Investors will closely monitor the magnitude of the opening gap in crude prices this week, the actual extent of shipping disruptions, and OPECs assessment of global supply-demand dynamics in its upcoming monthly report. These factors will determine whether the current geopolitical risk premium in oil prices can be sustained.

China‘s Semiconductor Capital Race Intensifies

China’s semiconductor industry is entering a new phase of capital expansion. Alibaba has increased its investment in ChangXin Memory Technologies (CXMT), while CXMT is set to launch its STAR Market subscription next week, seeking to raise RMB 29.5 billion. At the same time, Yangtze Memory Technologies (YMTC) has officially begun IPO counseling procedures.

The developments coincide with Samsung accelerating production at its Yongin semiconductor complex. As memory and advanced-node manufacturing capacity expands globally, the competitive landscape is shifting rapidly. Companies capable of balancing capacity growth with manufacturing yield improvements are likely to gain stronger pricing power within the AI computing supply chain.

Key Events to Watch

• Federal Reserve Governor Christopher Waller delivers remarks

• OPEC Monthly Oil Market Report amid ongoing Strait of Hormuz uncertainty

• ChangXin Memory Technologies begins STAR Market subscription on July 16, targeting RMB 29.5 billion in fundraising

• General Fusion is scheduled to debut on Nasdaq next Monday, becoming the first publicly listed commercial fusion-energy company