Stocks Fall, Oil Rises as Hormuz Deal Hopes Fade, Triggering Bond Sell-Off

Market sentiment has shifted sharply as expectations for a normalization of flows through the Strait of Hormuz weaken, driving a sell-off in equities and bonds while oil prices rise. The reversal suggests traders are repricing geopolitical risk in the region, with uncertainty over the likelihood of a diplomatic resolution. The bond sell-off indicates inflation and growth concerns are resurfacing, potentially complicating central bank policy.