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Foreign Money Floods US Markets as Iran Shuts Strait of Hormuz Again

Foreign investors poured a record $1.55 trillion into U.S. financial assets in 2025, underscoring persistent safe‑haven demand even as geopolitics heat up. The article highlights a tug-of-war: huge capital inflows buoy U.S. markets and equities (foreign holdings near $21 trillion), while Iran’s April 21 re‑closure of the Strait of Hormuz has pushed Brent toward ~$95/bbl and raised short‑term risk to energy and agricultural trade. The diplomatic breakdown may also complicate the planned U.S.–China summit and disrupt commodity flows (soybeans), leaving markets exposed to renewed volatility despite strong foreign demand for U.S. assets.

Category

US 500

Sentiment

Mixed

Event

Institutional flow

Reading time

1 min