Iranian parliament Speaker Mohammad Bagher Ghalibaf said Tuesday that forces will keep the Strait of Hormuz closed until the US meets its obligations under the Islamabad memorandum of understanding, an agreement he said Washington has failed to honor, according to The Washington Times. The statement hardens Tehran's position as the standoff spreads into global markets.

The comments follow President Donald Trump's threat last week to bomb Oman, the Gulf state that has served as the discreet broker between Washington and Tehran, according to Gamereactor UK.

Japan's Nikkei closed lower Tuesday amid the Middle East stalemate, per صحيفة مال. European shares slipped as oil prices and bond yields surged on the same fears, according to WTVB.

Bond markets from the US to Japan were also hit by inflation and fiscal worries compounding the geopolitical shock, according to Reuters, with global sentiment weakening further as yields kept climbing, per RTTNews.

HYPOTHESIS: investors are pricing in a prolonged closure of the strait, not a brief disruption. Supporting this: yields, normally a safe-haven move in a crisis, rose in tandem with the equity selloff rather than against it, per Reuters and RTTNews. Against this: Reuters attributes part of the yield surge to pre-existing inflation and fiscal concerns unrelated to Hormuz.

Watch whether Oman's mediating channel survives the bombing threat, and whether Ghalibaf's linkage of the closure to the Islamabad memorandum signals a fixed reopening condition or a negotiating position.