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Singapore equities opened lower on Monday as markets reacted to a sharp escalation in geopolitical tensions following a US naval blockade of the  Strait of Hormuz . STI Dips Amid Rising Geopolitical Risks The  FTSE Singapore Straits Time Index  fell  0.34% to 4,972.32 , reflecting cautious sentiment across the market. Decliners outpaced advancers 160 to 79 Trading volume:  143.8 million shares (S$214 million) The decline comes as investors reassess risks after a breakdown in US-Iran negotiations. Trump Declares Hormuz Blockade Donald Trump  announced that the US Navy would  blockade all ships entering or leaving the Strait of Hormuz , a critical artery for global energy supply. The move significantly raises concerns over: Global oil supply disruptions Rising energy prices Inflation pressures across economies Markets are increasingly pricing in  prolonged geopolitical tension and supply shocks . Wall Street Mixed as AI Stocks Outperform US markets ...

The European Central Bank may need to raise interest rates sooner than markets expect as the Iran war pushes energy prices higher and revives inflation risks, according to Governing Council member Peter Kazimir. While no move is expected at next week’s meeting,  upside inflation risks are now dominating the outlook , potentially bringing a rate hike closer than anticipated. Key Takeaways ECB hike could come sooner if energy shock persists Traders price ~40% chance of a quarter-point hike by June Further rate cuts now “off the table” Inflation risks seen shifting clearly to the upside Policymakers prepared to act without waiting for new forecasts Inflation Risks Back on the Radar The Iran conflict has triggered sharp swings in oil prices, raising concerns that: Businesses may pass through higher energy costs faster Workers may demand higher wages Inflation expectations could become unanchored According to Kazimir, the memory of the 2022 inflation shock — when euro-zone inflation exc...