Oil jumps, stocks fall as US plans Hormuz blockade

Oil prices surged while global stock markets declined after United States-Iran talks collapsed and Donald Trump announced plans to blockade the Strait of Hormuz.

Crude prices jumped sharply, with West Texas Intermediate rising about 8 percent above $104 per barrel and Brent crude climbing nearly 7 percent past $101, reflecting renewed fears over energy supply disruptions.

Equity markets across Asia fell, with losses in Tokyo, Hong Kong, Seoul and other regional exchanges as investor sentiment weakened following the escalation.

The proposed blockade comes after negotiations in Pakistan broke down, with both sides blaming each other for failing to reach an agreement on Iran’s nuclear program.

Trump said the US Navy would block vessels linked to Iranian ports, aiming to prevent Tehran from benefiting from control of the waterway, through which about one-fifth of global oil and gas flows.

Iranian officials rejected the move, warning of serious consequences, while analysts cautioned that such action could effectively reignite full-scale conflict in the region.

The renewed tensions have heightened concerns about persistent inflation and economic instability, as higher energy costs continue to pressure global markets.