Global markets experienced significant volatility on Monday as geopolitical tensions and corporate developments influenced various asset classes. The U.S. escalated pressure on Iran by implementing a blockade in the Strait of Hormuz, leading to a surge in oil prices and uncertainty in financial markets, according to CryptoRank.

U.S. Blockade in the Strait of Hormuz

President Donald Trump announced that the U.S. had begun blocking ships from entering or exiting Iranian ports in the Strait of Hormuz, marking a significant escalation following the collapse of peace talks with Iran. Trump emphasized that the move was intended to force Iran to reopen the strait and return to negotiations — the blockade applies to vessels entering or leaving Iranian ports, though U.S. Central Command clarified that it would not impede neutral shipping, according to CryptoRank.

Iranian officials responded to the blockade by warning that it could push global energy prices higher, highlighting the broader economic risks tied to the conflict — the U.S. move followed failed negotiations in Pakistan and rising tensions after a fragile ceasefire showed signs of breaking down, as reported by TradingView.

Oil Prices Surge Amid Supply Fears

Oil prices spiked above $100 per barrel amid concerns over supply disruptions linked to the Strait of Hormuz, a critical route that handles roughly 20% of global oil and liquefied natural gas flows. Prices later eased slightly. With Brent crude at $98.41 per barrel, up 3.4%, and WTI at $97.99, up 1.4%; Physical crude in Europe traded even higher, with some grades reaching around $150 per barrel, according to reports from CryptoRank.

During the war with the United States, Iran had allowed the passage of tankers in return for a toll of up to 2 million dollars per ship. Iran exported an average of 1.85 million barrels of crude per day, an increase of 100,000 barrels per day from the previous three months, according to 경향신문.

Market Reactions and Economic Implications

The dollar index DXY fell by -0.24% on Monday, reaching a 1.25-month low after stocks recovered when Trump indicated that Iran still wanted to make a deal and reached out to the U.S. over peace negotiations. The dollar also fell after U.S. March existing home sales fell more than expected to a 9-month low of 3.98 million, weaker than expectations of 4.05 million, according to TradingView.

Swaps markets are ing the odds at 1% for a +25 bp rate hike at the April 28-29 FOMC meeting. The dollar continues to be undercut by a poor outlook for interest rate differentials, with the FOMC expected to cut interest rates by at least -25 bp in 2026, while the BOJ and ECB are expected to raise rates by at least +25 bp in 2026. EUR/USD S rose by +0.06% on Monday, according to TradingView.

The U.S. had been blocking sales of Iranian crude, but partially eased sanctions during the war out of concern about a surge in international oil prices, as reported by 경향신문. Trump’s move to blockade the Strait of Hormuz is seen as an attempt to cut off Iran’s funding sources, maximize pressure, and enhance negotiating exploit, according to 경향신문.

Iran said it would target all ports in and close to the Persian Gulf if its own shipping hubs are threatened, according to TradingView. The U.S. move follows the deadlocked peace talks over the weekend between the U.S. and Iran, with Trump threatening to retaliate in the event of Iranian resistance.