The U.S. has reactivated the blockade of the Strait of Hormuz, Trump announced yesterday, adding today that they will strike Iran hard today and tomorrow, causing a 10% rise in crude oil prices, with WTI returning to $78 and Brent to $83. In equities, U.S. indices fell, led by the Nasdaq, which dropped 1.55% amid an average 7-basis-point rise in yields across the Treasury yield curve, with the 10-year yield closing at 4.62% and the 30-year yield at 5.10%. The dollar appreciated 0.3%, with the DXY standing at 101.3, while the VIX rebounded to 17.

Venezuelan bonds saw limited trading activity, but both yield curves rose by 0.25 points amid rising oil prices, with increased interest in both the short- and long-end of the sovereign yield curve, as well as in the long end of PDVSA’s yield curve.

Latin American bonds closed in the red, as expected, following the decline in Treasuries, with the region’s major issues down 0.25–0.5 points, while spreads remained largely unchanged.