Oil tops $100
Oil climbed above $100 a barrel after the U.S. moved toward a naval blockade of Iranian ports, and Asian markets opened lower on Monday as traders priced in supply risk. The dollar and oil rose while global equities fell as investors sought safety and market participants fretted over exports through the Strait of Hormuz. China’s yuan weakened and Gulf equity markets were subdued amid the sell‑off. (cnbc.com) (economictimes.indiatimes.com) (thehindubusinessline.com) (reuters.com)
Oil jumped above $100 a barrel early Monday after the United States moved toward a naval blockade around Iran, jolting markets across Asia. (reuters.com) (usnews.com) Reuters reported Brent crude rose about 8% to $102.80 a barrel by 11:10 p.m. Greenwich Mean Time, while United States West Texas Intermediate climbed about 8.6% to $104.88 after Friday losses. (usnews.com) (thehindu.com) Asian equities opened lower, with CNBC reporting traders sold stocks and bought the dollar as the risk of disrupted oil flows through the Strait of Hormuz returned to the center of trading. (cnbc.com) (economictimes.indiatimes.com) The Strait of Hormuz is the narrow shipping lane at the mouth of the Persian Gulf that normally carries about one-fifth of the world’s crude oil. When traffic there is threatened, traders price in the chance that fewer barrels will reach buyers in Asia and Europe. (cnbc.com) (nbcnews.com) This latest jump followed the collapse of weekend talks between Washington and Tehran, which had been aimed at turning a fragile ceasefire into a longer agreement. Al Jazeera, citing Reuters, reported the United States military said the blockade of Iranian ports would begin at 14:00 Greenwich Mean Time on Monday, April 13. (aljazeera.com) (cnbc.com) The market had already been primed for another shock because the waterway had been restricted during the wider United States-Iran war, even during a recent ceasefire. CNBC reported on April 10 that the conflict had entered its second month and that traffic through Hormuz remained largely restricted despite the truce. (cnbc.com) Currency markets moved the same way as oil and stocks: investors sought safer assets, the dollar strengthened, and China’s yuan came under pressure in early trading. Gulf equity markets were also subdued as investors weighed the risk of a longer disruption to regional exports and shipping. (economictimes.indiatimes.com) (thehindubusinessline.com) (reuters.com) President Donald Trump said the blockade was meant to stop Iran from controlling the strait and profiting while global trade was squeezed. Iran has not accepted that rationale, and the failure of the latest talks leaves traders watching whether tankers can move normally after Monday’s deadline. (cnbc.com) (aljazeera.com)
