The U.S. President mentioned a prolonged blockade of Iranian ports, triggering a surge in international oil prices, stock market declines, and a stronger U.S. dollar.

On Wednesday, the United States hinted at the possibility of imposing a "months-long" blockade on Iranian ports, AFP reported from Tokyo on the 30th, stating this would place prolonged pressure on the global economy and have an immediate impact on oil prices, which have surged to their highest level in four years.

A senior U.S. government official revealed on Wednesday that during a meeting at the White House on Tuesday with executives from the oil industry, discussions included measures taken by President Trump to alleviate pressures in the international oil market—specifically, extending the current blockade for several months if necessary, while minimizing impacts on American consumers.

Donald Trump himself said in an interview with the U.S. Axios website, "A blockade is more effective than bombing."

Brent crude hits new high since conflict erupted

Around 06:30 GMT, West Texas Intermediate (WTI) crude—the benchmark for the U.S. market—rose 3.13% to $110.23 per barrel.

At the same time, Brent crude, the global benchmark traded in the North Sea, jumped 5.39% to $124.39, having earlier surged nearly 7.5% to reach $126.41.

This marks the highest level since the outbreak of the Middle East conflict two months ago, and also the peak since mid-2022—when Russia’s invasion of Ukraine triggered a previous oil price spike.

After a sharp rise during Wednesday’s trading session, oil prices are now consolidating gains. On Wednesday, WTI crude soared nearly 7%, while Brent crude rose 6%.

Stephen Innes of SPI Asset Management warned at the opening bell that there were no signs of easing geopolitical tensions […] “Storage capacity in the Gulf region is nearing saturation, exports are constrained, and risks are no longer limited to supply disruptions—they have now expanded to long-term declines in production,” he said.

He emphasized, “When crude cannot flow, wells shut down; and under crisis conditions, restarting operations is neither immediate nor guaranteed. That’s why temporary supply disruptions evolve into more structural problems.”

Stock markets decline

In Tokyo, the Nikkei index closed down 1.05% at 59,284.92 points. In Seoul, the Kospi index dropped 1.38%.

Elsewhere in Asia, Taiwan’s stock market fell 0.96%, and Sydney’s market declined 0.24%. As of 06:30 GMT, Hong Kong’s Hang Seng Index was down 1.19%.

Dollar strengthens, rupee weakens

Around 06:30 GMT on Thursday, the U.S. dollar rose 0.11% against the yen, reaching 1 USD = 160.59 JPY.

The dollar had already strengthened on Wednesday, driven both by expectations of prolonged blockades in the Strait of Hormuz leading to soaring oil prices and by the U.S. Federal Reserve’s recent reluctance to cut interest rates.

The dollar is viewed by investors as a safe-haven asset—buying dollars increases when market concerns grow. As oil prices climbed, the dollar appreciated accordingly.

Gold prices rebounded 0.64% after a brief dip, rising to $4,576 per ounce.

Meanwhile, due to ongoing concerns about India's external deficit intensified by persistently rising oil prices, the Indian rupee hit a historical low against the U.S. dollar. On Thursday, the rupee fell as much as 0.4%, reaching 1 USD = 95.26 INR, breaking below the previous low set in late March.

Source: rfi

Original article: toutiao.com/article/1863914596491466/

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