Hormuz closure shocks markets
Near‑total closure of the Strait of Hormuz — which handles about a quarter of global seaborne oil trade — has paralyzed flows and sent crude prices sharply higher while equities slid. Houthi missile and drone strikes are also threatening the Red Sea alternative route and analysts warn attacks could spread to submarine internet cables, adding trade, market and connectivity risk as energy security concerns push investors toward renewables and batteries. (gcaptain.com) (bloomberg.com) (hindustantimes.com) (rivieramm.com)
Brent crude jumped above $109.60 on March 30, 2026 — a roughly 4% one‑day rise and about a 41% gain over the prior month as markets priced in the Hormuz disruption. (tradingeconomics.com) Transit data and shipping reports show tanker traffic through the Strait of Hormuz has plunged by more than 90%, effectively stranding roughly 20 million barrels per day of crude and petroleum products. (markets.financialcontent.com) The International Energy Agency convened an emergency meeting and agreed to release a record 400 million barrels from member strategic reserves to dampen the supply shock, and IEA chief Fatih Birol has warned the disruption could be worse than the 1970s oil crises. (iea.org) Houthi missile and drone strikes in the southern Red Sea have forced carriers to reroute and put more than a dozen subsea cables at risk, reviving concerns after multiple cable damages in 2024 that previously disrupted traffic between Europe, the Middle East and Asia. (gulfnews.com) Equity markets reacted: U.S. indexes slid amid the spike in energy risk, with the S&P 500 down 1.74% on March 25 and the Dow plunging about 792.7 points on March 28 as traders reassessed growth and inflation paths. (cnbc.com) Investors have rotated into clean‑energy and battery names — the market value of leading Chinese battery makers such as BYD, CATL and Sungrow rose by roughly $70 billion since the conflict began — while lithium prices climbed to 164,500 CNY/ton on March 30 amid raw‑material tightness. (semafor.com)
