Oil Surges Above $100, Stocks Fall After U.S.
Moves to Blockade Hormuz
Oil Market
Shock
·
Peace
talks between U.S. and Iran collapsed, raising tensions.
·
President
Trump announced plans to blockade the Strait of Hormuz, restricting Iranian
oil exports.
·
Brent
crude rose 7% to $102/barrel; WTI crude climbed 8% to $105/barrel.
·
The
Strait of Hormuz, through which ~20% of global oil supply passes, remains
highly disrupted.
Stock Market
Reaction
·
S&P
500 futures fell ~1%,
reversing recent gains from the cease-fire.
·
Asian
markets dropped: Japan’s Nikkei 225, South Korea’s Kospi, and Hong Kong stocks
all declined over 1%.
Gasoline &
Diesel Prices
·
U.S.
gas prices steady at $4.13/gallon, up 38% since war began.
·
Diesel
prices surged to $5.66/gallon, up 50% since start of war.
Outlook
·
The
blockade threat adds uncertainty to the fragile cease-fire.
·
Investors
remain rattled by risks to Persian Gulf energy flows.
·
Markets
brace for longer-term instability if escalation continues.
In essence: The
collapse of peace talks and Trump’s blockade threat sent oil above $100, rattled
global markets, and reinforced fears that the Strait of Hormuz could remain paralyzed
— a choke point with massive implications for energy security worldwide.
[ABS News Service/13.04.2026]
Oil prices rose and stocks fell on Monday (13.04.2026) after peace
talks between the United States and Iran ended without a deal. Hours later, President
Trump announced plans to blockade the Strait of Hormuz.
It is not yet clear what that escalation will mean for the fragile
cease-fire the countries agreed to last week, leaving no clear path to ending a
war that is now entering its seventh week. That uncertainty continues to rattle
investors eager for a path to stabilize the flow of oil and natural gas from the
Persian Gulf.
In attempting a blockade, Mr. Trump is repeating a playbook he used
recently against Venezuela to cut that country off from a vital source of revenue.
This time, he does not want Iran to be able to use the strait, a vital waterway,
for exports. U.S. Central Command clarified on Sunday that U.S. forces would interfere only with vessels traveling to
and from Iranian ports.
“We’re not going to let Iran make money by selling oil to people
that they like,” Mr. Trump told Fox News.
·
Oil prices surged above $100 once
more as markets opened on Sunday evening.
·
The price of Brent crude, the global
benchmark for oil, rose more than 7 percent to around $102 a barrel.
·
West Texas Intermediate crude, the
U.S. benchmark, climbed more than 8 percent to about $105 a barrel.
·
Investors and analysts are focused
on the continued disruption to shipping in the Strait of Hormuz, the narrow waterway between
Iran and Oman that is a vital trading route for oil and natural gas. As much as
one-fifth of the world’s oil supply and substantial amounts of natural gas typically
pass through the strait. But few vessels have attempted that trip since the war
started out of fear that Iran might attack.
·
Futures on the S&P 500, which
give investors a chance to bet on the market before exchanges open on Monday morning,
fell nearly 1 percent. The stock market had stabilized after a fragile cease-fire
took hold last week, with the S&P 500 rising 3.6 percent for the week through
Friday, its second consecutive week of gains.
·
Stocks in Asia, where countries import
vast quantities of oil and gas, were trading lower. Japan’s Nikkei 225 and South
Korea’s benchmark Kospi fell more than 1 percent, while stocks in Hong Kong also
declined.
·
Gas prices were little changed on
Sunday, at a national average of about $4.13 a gallon, according to the AAA motor
club. The rise in prices since the war began has raised the cost of regular gas
for drivers by 38 percent.
·
Gas prices don’t move in lock step
with crude, usually trailing increases or drops by a few days.
·
Diesel prices have increased more
quickly in recent weeks and stood at $5.66 on Sunday, up some 50 percent since the
start of the war.