Global markets are jittery as the US-Iran conflict escalates, pushing equities lower and sending energy prices higher. Major Asian indexes opened sharply down, with South Korea’s market plunging more than 6% as investors price in the risk of prolonged disruptions to oil shipments through the Strait of Hormuz. Why it matters: the Strait of Hormuz is a critical chokepoint for global oil flows. Concerns that it could be closed for an extended period have amplified fears of an energy squeeze across Asia and beyond, fueling volatility across equities, commodities and safe-haven assets. Where equities stand: the S&P 500 has fallen roughly 5% since the outbreak of the conflict and is now about 15 trading days into the sell-off. US futures opened lower amid fresh rhetoric from Washington, with benchmark futures down around 0.6–0.7% at the open. At the same time, crude oil futures rose—WTI by about 2% and Brent by about 1.5%—while gold briefly dropped roughly 2.5%. Historical context suggests opportunity: analysts at the Kobeissi Letter note that across more than 30 major geopolitical shocks since 1939, US stocks have tended to bottom around the 15th trading day on average. After that typical trough, the average recovery has taken about 40 trading days to reach pre-event levels. Based on that pattern, the current sell-off is tracking closely with the historical median and average paths, which some investors interpret as a potential buying window. Market reaction and risks: the headlines driving markets include threats to Iranian infrastructure and tight deadlines for reopening the Hormuz route, which have stoked fresh downside in equities and upside in oil. That combination—heightened geopolitical risk, rising energy prices and equity weakness—creates a volatile environment that can present discounted entry points but also carries significant downside if the conflict deepens. What this means for crypto traders: risk assets often move in tandem during major shocks. Crypto markets can react to the same liquidity and risk-on/risk-off flows affecting stocks and commodities. Traders looking for buy-the-dip opportunities should weigh historical patterns against the unusually fluid geopolitical backdrop and elevated volatility. Bottom line: while history shows markets can rebound after geopolitical shocks—often beginning near the two-week mark—this event’s energy and geopolitical dynamics make outcomes uncertain. Investors and crypto traders should prepare for continued volatility and consider risk management if positioning for any potential rebound. Read more AI-generated news on: undefined/news