Finance13 April, 20261 min read
Trump Orders U.S. Naval Blockade of Strait of Hormuz, Oil Surges Above $100
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U.S. Navy to blockade Iranian ports and Strait of Hormuz. Oil rises above $100, trading near $104.
Markets React to Hormuz Blockade
Global financial markets plunged after Trump announced a U.S. naval blockade of the Strait of Hormuz.
Dow futures dropped more than 450 points, with the S&P 500 and Nasdaq also falling.
Oil prices surged above $100 per barrel, with Brent crude crossing $102 and WTI topping $104.
Trump declared on Truth Social that the U.S. Navy will begin blockading any ships trying to enter or leave the Strait of Hormuz.
CENTCOM confirmed the blockade would be enforced impartially against vessels of all nations.
Oil Surge and Economic Impact
The blockade sent oil prices soaring, with Brent crude rising more than 7%. The Strait of Hormuz handles roughly one-fifth of global oil flows. The U.S. consumer price index for March showed inflation rose by 0.9%.
Gasoline prices at the pump rose to a national average of $4.15 a gallon. The energy index surged 10.9% in March, its largest monthly gain since 2005.
Goldman Sachs Earnings and Market Dynamics
Goldman Sachs reported a second quarterly record in a row, with net revenues of $17.23 billion. CEO David Solomon said the firm delivered a very strong performance for our shareholders. The investment bank's equities arm generated revenue of $5.3 billion, beating the previous record.
Goldman shares fell 4% in premarket trading as investors weighed the broader market sell-off. The disconnect highlights the dominance of geopolitical risk over fundamentals.
Global Market Ripples
Asian indices fell, with Japan's Nikkei down 0.7%. European stocks retreated, with Germany's DAX down 1%. The euro fell to $1.1692 and the Australian dollar declined.
Safe-haven demand pushed gold and U.S. government bonds higher. The shipping industry was on high alert as insurance premiums began to rise.
