CNBC Daily Open: Hormuz toll threats, Mideast tensions keep investors on edge

Hello, this is Justina Lee writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.

The latest developments in the Middle East including a proposed 20% toll on cargo through the Strait of Hormuz have sent oil surging.

Dwindling hopes of a Mideast peace deal and a tech sell-off sent U.S. benchmark indexes lower overnight, though futures were little changed ahead of earnings and inflation data.

Energy concerns have resurfaced, following U.S. President Donald Trump's proposal of a 20% toll on cargo through the Strait of Hormuz.

"The U.S.A. will be, from this point forward, known as 'THE GUARDIAN OF THE HORMUZ STRAIT,'" Trump claimed in a Truth Social post. Trump also asked that the U.S. be reimbursed "on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World."

Oil prices jumped over 9% on Monday, their biggest daily gain since 2020, following Trump's decision to reinstate the Iran blockade. Assurance from the U.S. that more than 8 million barrels of oil have been moved through the Strait of Hormuz via military assistance did not curb energy concerns. Prices were over 2% higher Tuesday in Asia trading.

The latest developments related to the Middle East impacted U.S. stocks, sending the S&P 500 0.8% lower. The Nasdaq Composite dropped 1.6% and the Dow pulled back by more than 100 points, or around 0.3%.

Stock futures, however, were little changed as traders seek some reprieve from upcoming earnings and inflation data.

Asia markets also opened lower as a risk-off mood took hold, with investors awaiting China trade data due later in the day, while Singapore reported its economy expanded 5.7% in the second quarter, topping market expectations, on the back of strong growth in the manufacturing sector.

—Justina Lee

UK strikes landmark trade deal with Switzerland for crucial services sector

The U.K. and Switzerland announced a services free trade agreement on Monday, in a deal that is expected to lend a multi-billion-dollar boost to British exports and ease travel between the two nations. 

It marks the sixth trade deal struck by the U.K. in two years and comes as the governing Labour Party seeks closer ties with Europe as part of a post-Brexit reset. While Switzerland is not a European Union member, it is deeply integrated into the European single market via a network of bilateral treaties.

The British government estimates the free trade agreement to eventually unlock £5.2 billion ($6.96 billion) a year in additional exports to Switzerland over the coming years.

A separate agreement will also allow those travelling between the two nations to use e-gates to speed up airport waiting times, while scrapping data roaming charges for visitors. 

—Joseph Wilkins