Global financial markets shifted into a state of high alert on Monday, April 13, 2026, after President Donald Trump announced a United States Navy blockade on the Strait of Hormuz. Consequently oil prices surged past the critical $100 threshold, intensifying fears of supply disruptions and escalating geopolitical tensions across energy-dependent economies.
Peace talks collapse in Islamabad as nuclear dispute stalls negotiations
The directive, scheduled to take effect at 10 a.m. Eastern Time, followed the collapse of high-level negotiations between Washington and Tehran in Islamabad. Officials reported that discussions stalled after both sides failed to agree on Iran’s nuclear programme and regional security demands. In response Iranian authorities labeled the blockade a violation of ceasefire understandings, thereby raising concerns about potential retaliatory strikes on vital energy infrastructure in the Gulf region. Meanwhile energy traders reacted swiftly as uncertainty spread across commodity markets worldwide.
Oil supply fears spark sharp declines across global stock markets
Benchmark crude prices recorded immediate gains during early trading sessions. West Texas Intermediate crude jumped 9 percent to $105.30 per barrel, while Brent crude climbed 8.55 percent to $103.30 per barrel. Notably the strategic importance of the Strait of Hormuz remains critical because it carries roughly 20 percent of global oil exports. Analysts therefore warned that the blockade could remove up to 1.7 million barrels per day of Iranian supply from an already constrained market. As a result global equity markets declined sharply, with major indices in the United States, Asia, and Europe posting losses. Furthermore natural gas futures in Europe surged significantly while investors strengthened the U.S. dollar and moved away from risk-sensitive currencies amid continuing uncertainty.
