Strait of Hormuz Closure Triggers Global Oil Surge, Crude Tops $118

The closure of the Strait of Hormuz by Iran sparked a dramatic surge in global oil prices, with Brent crude topping $118 per barrel.

Approximately 20 million barrels per day transit the chokepoint, with alternative routes providing only partial relief.

Anadolu Ajansi

Refined product prices in Asia bore the brunt of the shock, with Singapore gasoil trading above $250 per barrel.

The market rebalancing through higher prices mirrored dynamics seen during the first year of the coronavirus pandemic.

The spike in energy prices translated quickly into economic pressures across the globe.

Fitch projected that a 30% increase in Brent crude could reduce European GDP by 0.6%.

DW

The ISM Manufacturing index in the US fell below 50 in March for the first time in 21 months.

The intertwined nature of global trade meant the Strait's closure affected many commodities.

Washington and Tehran engaged in indirect talks in Muscat, Oman aimed at de-escalating the conflict.

Iran's Foreign Minister said negotiations would continue from a position of equality based on respect and shared interests.

The US Navy directed ships to refuse Iranian commands in the Gulf.

The war's trajectory remained highly uncertain.

Securities industry sources in Seoul framed the market volatility as a short-term correction and potential buying opportunity.

KB Securities emphasized that in a crash, what matters is the fundamentals.

Marex

Cheap acquisitions in energy, automotive, and leisure were highlighted as effective strategies.