Hormuz Tensions Spark Market Uncertainty Amidst Busy Data Week

Markets are on edge due to a developing situation in the Strait of Hormuz, which carries almost 20% of the world's oil. The Persian Gulf Strait Authority claimed that transit through the strait is 'not possible' due to alleged US military movements in the region.

The US Central Command disputed this claim, stating that the waterway remains open for lawful shipping. However, traders are left uncertain and this doubt can cause significant market swings.

This week's calendar is packed with major data releases that could influence inflation expectations and Fed policy outlook. The key events include June CPI data on Tuesday, which tracks price changes for everyday goods; June PPI data on Wednesday, which measures wholesale prices; and retail sales on Thursday, which indicates consumer spending.

The market is heavily expecting a 4.2% reading in the June CPI report, while the June PPI data is forecasted to show a decline from 6.5% to 6.4%. The uncertainty surrounding the Hormuz situation could exacerbate oil-driven inflation fears and put downward pressure on the crypto market.