Finance

Energy markets responded dramatically to the geopolitical shifts, with crude oil benchmarks plunging roughly five percent. West Texas Intermediate futures tumbled to around $80 per barrel after the threat of immediate military confrontation subsided and expectations grew for the reopening of the crucial Strait of Hormuz. The steep decline in energy costs alleviated near-term inflation anxieties for investors, helping fuel a broader relief rally across equity markets.

Adding further momentum to the day's market rally, new economic data revealed that the U.S. manufacturing sector is expanding robustly. The July ISM manufacturing index climbed sharply to 55.6, representing its strongest reading since 2022 and easily beating predictions from top economists. This surprise data point provided Wall Street with reassuring evidence of economic stability amid broader geopolitical headwinds.

In contrast to the major gains seen across equities, digital assets lagged significantly on Monday. Bitcoin hovered under pressure near the $62,600 mark as a major exploit involving the Coldcard hardware wallet continued to weigh on investor confidence. The persistent self-custody vulnerabilities and broad dollar strength offset any positive momentum that could have been gained from the geopolitical de-escalation.