Two ships attacked in Strait of Hormuz

What happened: On May 5, a large cargo ship near the Strait of Hormuz reported an attack by multiple small craft. Iran's Revolutionary Guards later released footage showing them seizing two vessels in the strait, claiming the ships attempted to exit covertly. The U.S. extended its ceasefire with Iran the previous day, but tensions escalated with Iran vowing to attack U.S. Navy ships entering the strait.

Market impact: Oil prices surged following the incident, driving up energy stocks. The Strait of Hormuz is a critical chokepoint for global oil supplies, with around 20% of the world's oil passing through it daily. Companies like ExxonMobil, Royal Dutch Shell, and BP, which operate in the region, could see increased volatility in their share prices.

What to watch next: On May 12, the U.S. is expected to announce its decision on waivers for countries importing Iranian oil, which could further escalate tensions. Additionally, on May 15, Iran's Supreme Leader Ali Khamenei is scheduled to deliver a speech, which could provide insight into Iran's next moves. Lastly, keep an eye on oil prices, as any significant movement could trigger a reaction in energy stocks.