July 21, 2026

The geopolitical conflict in the Middle East continues to escalate

International

The conflict in the Middle East added a new front of tension after the Houthis in Yemen announced a maritime embargo on Saudi ships transiting the Bab al-Mandeb Strait, in retaliation for the attacks attributed to Saudi Arabia on Sana'a airport. This measure comes on top of the effective closure of the Strait of Hormuz, in effect since the end of February as part of the trade war between Iran and the United States, and threatens to further restrict the global flow of oil, given that a significant portion of Saudi exports, which until now were channeled as an alternative to the Strait of Hormuz, pass through Bab al-Mandeb. In this context, the price of crude oil exceeded $90 per barrel this morning.

As for US stock indices, yesterday's session closed with mixed results. The S&P 500 fell 0.2%, the Nasdaq remained virtually unchanged, and the Dow Jones declined 0.6%. So far this year, the S&P 500 has risen 8.7%, the Nasdaq 9.7%, and the Dow Jones 7.9%.

Regarding US Treasury yields, rates rose across the curve. The 1-year Treasury note moved from 3.99% to 4.02%, the 3-year note increased from 4.21% to 4.25%, and the 10-year note advanced from 4.55% to 4.59%.

Finally, commodities saw mixed movements. Gold fell 0.2% to $4,008.00 per ounce. Soybeans rose 1.5% to $449.30 per ton. Among energy commodities, WTI advanced +0.7% to USD 83.1 per barrel, while Brent rose +1.0% to USD 89.0 per barrel.

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