The Strait of Hormuz remains a vital maritime chokepoint and serves as the primary artery linking the Persian Gulf to international energy markets. With approximately 20% of global oil and gas shipments transiting this waterway, it is the backbone of energy security for Asia, Europe, and beyond.
Geopolitical deadlock remains the primary driver of market activity on Monday. With the Strait of Hormuz effectively closed for its 11th week, the breakdown in diplomatic talks between Washington and Tehran has sent energy prices climbing and strengthened the U.S. dollar as a liquidity safe haven.
The continued closure of the world’s most strategic maritime chokepoint, has pushed prices toward psychological resistance levels.
Brent Crude: Rose 4.3% to $105.47 per barrel.
U.S. Crude (WTI): Climbed 4.7% to $99.92 per barrel.
Analysts at JPMorgan warn that while current prices are a "headwind," the market will enter a period of "operational stress" by June if the blockade persists.
The U.S. dollar has benefited from its status as the primary global liquidity currency during times of high-intensity conflict.
USD/JPY: The dollar rose 0.33% to 157.16. Japan is banking on a hawkish Bank of Japan and support from U.S. Treasury Secretary Scott Bessent to curb the yen's weakness.
EUR/USD: The euro slipped 0.24% to $1.1757, reflecting Europe's vulnerability as a major energy importer.
Gold: Despite the crisis, gold fell 0.5% to $4,690 an ounce, as investors prioritised cash over traditional hedges.
While broader global indices showed signs of instability, specific sectors in Asia managed to post significant gains.
South Korea (KOSPI): Jumped 4%, led by heavy gains in artificial-intelligence-linked chipmakers.
China (CSI300): Rose 1.4%, even as data showed producer prices hitting a 45-month high due to energy costs.
Japan (Nikkei): Fell 0.36%, erasing earlier gains as the cost of energy imports weighed on sentiment.
U.S. Futures: S&P 500 and Nasdaq futures edged down slightly (0.1% and 0.05%) following record highs last week.
The conflict: War broke out in late February between Iran and the U.S.-led alliance.
The standoff: President Trump has rejected Tehran’s counter-proposal, which demanded an end to the war, lifting of sanctions, reparations, and formal recognition of their control over the waterway.
The next move: Global attention turns to the upcoming meeting between President Trump and President Xi Jinping in China. Gulf security, trade, and artificial intelligence (AI) are expected to dominate the discussion.
Supply Risk: The 11-week closure of the Strait is now the dominant factor in price formation.
Inflationary Pressure: Rising energy costs are manifesting in Chinese producer and consumer inflation data.
Regional Vulnerability: Japan and Europe are the most economically exposed due to their reliance on oil imports.
Liquidity Preference: Markets are currently favouring the U.S. dollar over gold as a risk-off asset.
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U.S. President Donald Trump called Iran’s response to Washington’s latest peace proposal “totally unacceptable” amid talks over ending the war and securing shipping through the Strait of Hormuz. A cargo vessel near Qatar was hit by a projectile as Kuwait reported hostile drones in its airspace.
President Donald Trump's swift rejection of Iran's response to a U.S. peace proposal sent oil prices surging higher on Monday amid concerns the 10-week-old conflict will drag on, keeping shipping through the Strait of Hormuz paralysed.
Australia confirmed it will repatriate citizens from the MV Hondius cruise ship hit by a deadly hantavirus outbreak, with quarantine on arrival. Spain, France are evacuating nationals as three deaths are confirmed. In the U.S., two passengers have been isolated after testing positive for the virus.
China’s leading chipmakers are funnelling unprecedented sums into research and development as Beijing accelerates efforts to reduce reliance on foreign technology amid intensifying U.S. export restrictions.
U.S. President Donald Trump called Iran’s response to Washington’s latest peace proposal “totally unacceptable” amid talks over ending the war and securing shipping through the Strait of Hormuz. A cargo vessel near Qatar was hit by a projectile as Kuwait reported hostile drones in its airspace.
SOCAR has completed the acquisition of a 99.82% stake in Italiana Petroli (IP) from API Holding after receiving all required regulatory approvals.
A Kyrgyz–Japanese archaeological expedition has uncovered the remains of a Buddhist temple complex at the medieval settlement of Ak-Beshim, also known as Suyab, in Kyrgyzstan’s Chui Region.
China’s exports grew faster than expected in April, as overseas buyers moved quickly to secure supplies amid fears that the conflict involving Iran could drive up global energy and transport costs.
Asian stocks surged to record highs on 7 May as investors priced in growing hopes of a potential Middle East peace deal, while oil prices eased and the U.S. dollar weakened amid shifting global risk sentiment.
Stocks around the world climbed to fresh record highs on Wednesday (6 May), while oil prices fell sharply, after reports suggested the United States and Iran were nearing an agreement to end conflict.
U.S. President Donald Trump has said he will raise tariffs on cars and trucks imported from the European Union to 25% next week, up from the 15% level agreed last year, accusing the bloc of failing to comply with its trade commitments.
The decision by the United Arab Emirates to leave OPEC+ on 1 May has put renewed focus on one of the most influential groups in global energy - and how its decisions can shape oil prices worldwide.
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