Market Extra: Global oil ‘choke point’ in focus after Trump calls off military strike against Iran: What you need to know

The Strait of Hormuz, the world’s most sensitive oil-transportation choke point, remains in focus after the U.S. called off a retaliatory strike against Iran late Thursday for its downing on Wednesday of an American military drone.

While President Donald Trump “will likely keep the pressure on the Iranians, it appears we will need another provocation from Tehran to warrant a swift retaliatory measure. Airstrikes from the U.S. would lead to a broader conflict that could see an immediate 10% spike in oil prices,” said Edward Moya, senior analyst at OANDA, in a Friday note.

The shooting down of the drone this week is the latest in a string of incidents near the waterway that have contributed to rising fears of a U.S.

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