Investors are looking past President Donald Trump\u2019s attempts to talk oil prices down as reports signal an increasing likelihood that U.S. ground troops will be deployed to fully reopen the Strait of Hormuz.<\/p>\n
The 31st Marine Expeditionary Unit has arrived in the Middle East, and the 11th MEU is en route, while thousands of paratroopers with the 82nd Airborne Division are headed there too. Another 10,000 U.S. troops<\/a> are\u00a0reportedly under consideration for deployment as well.<\/p>\n Futures tied to the\u00a0Dow\u00a0Jones industrial average fell 298 points, or 0.66%. S&P 500 futures were down 0.62%, and\u00a0Nasdaq\u00a0futures lost 0.68%.<\/p>\n U.S. oil futures rose 2.4% to $101.99 a barrel, and Brent crude climbed 2% to $114.88. The national average gasoline price reached $3.98 a gallon on Sunday, up $1 over the past month, according to AAA<\/a>.<\/p>\n The U.S. dollar was up 0.14% against the euro and flat against the yen. The yield on the 10-year Treasury fell 1.2 basis point to 4.428%. Borrowing costs rose last week after a series of bond auctions drew weak demand<\/a> as investors grew more concerned about fallout from the Iran war.<\/p>\n Over the weekend, sources told the Washington Post<\/a> that the Pentagon is\u00a0preparing for weeks of ground operations in Iran, though the White House said the plans don\u2019t mean Trump has made a decision.<\/p>\n Rather than a full-scale invasion, any ground attacks may take the form of raids by a combination of special forces and conventional infantry, the report said. <\/p>\n Targets could include Kharg Island, which is the export hub for 90% of Iran\u2019s oil, and coastal areas near the Strait of Hormuz, according to the Post. <\/p>\n While U.S. and Israeli airstrikes have devastated Iran\u2019s military, Tehran has asserted itself as the de facto gatekeeper over the Strait of Hormuz by threatening drone attacks on ships. As a result, more countries are asking Iran for safe passage through the narrow waterway and even paying millions of dollars.<\/p>\n In addition, the Islamic Republic could wield even more control over global oil supplies as Houthi allies have now entered the war. <\/p>\n The Yemen-based rebels claimed a missile launch toward Israel<\/a> early Saturday, raising fears that they could also target commercial ships in the Red\u00a0Sea\u00a0corridor, as they did during the Israel-Hamas war, disrupting traffic through the Suez Canal.\u00a0<\/p>\n With the Strait of Hormuz largely closed off and one-fifth of the world\u2019s crude bottled up in the Persian Gulf, the Red Sea<\/a> has emerged as a vital alternate route for getting oil to global markets.<\/p>\n