US Israel Iran conflict: Sharp Surge in Global Oil Prices Following US Announcement of Blockade of Strait of Hormuz, stock market crashes
US Israel Iran conflict: The United States is set to implement a blockade of the Strait of Hormuz starting Monday. According to the U.S. Central Command, vessels traveling to or from Iranian ports will be intercepted starting at 7:30 PM Indian Standard Time.
On the other hand, Iran claimed that the Strait of Hormuz is entirely under its control and that ships passing through it will be required to pay tolls in rials.
Meanwhile, Trump has issued a clear warning to China that if it provides military assistance to Iran, the United States will impose heavy tariffs of up to 50% on it.
The impact of the United States' announcement of a blockade on the Strait of Hormuz has become immediately apparent. Maritime traffic through this route has come to a near standstill.
According to the maritime intelligence firm Lloyd's List, traffic halted immediately following the announcement of the blockade, and many vessels have diverted their routes or turned back.
Global oil prices witness sharp surge
Following the announcement of the blockade, global oil prices have witnessed a sharp surge. West Texas Intermediate (WTI) has climbed past $104 per barrel, while Brent crude has crossed the $102 per barrel mark.
President Donald Trump stated that the objective of the blockade is to halt Iran's oil sales. According to Trump, several other nations are also supporting the U.S. in this endeavor. Trump has claimed that Iran's military capabilities have suffered severe damage and that its navy has been all but wiped out. He added that 158 vessels have been destroyed.
Meanwhile, some media reports suggest that, following the failure of talks held in Pakistan, the United States is once again considering launching military strikes against Iran. The White House has clarified that all options remain on the table and that future decisions will be taken based on how the situation evolves.
Stock market crashes
On Monday, April 13 the Sensex is trading at 76,500, down 1,000 points (1.34%). The Nifty has also declined by 300 points (1.26%), falling to the 23,750 level. Government bank stocks are witnessing the heaviest sell-off in today's trading session.
The 21-hour-long negotiations held between Iran and the United States in Pakistan have concluded without reaching any agreement. US Vice President JD Vance stated that he is returning without a deal. The direct impact of this development is evident across global markets.