{"id":60832,"date":"2026-04-13T04:38:25","date_gmt":"2026-04-13T08:38:25","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/geopolitical-crisis-deepens-as-us-blockade-of-strait-of-hormuz-ignites-oil-price-surge\/60832\/"},"modified":"2026-04-13T04:38:25","modified_gmt":"2026-04-13T08:38:25","slug":"geopolitical-crisis-deepens-as-us-blockade-of-strait-of-hormuz-ignites-oil-price-surge","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/geopolitical-crisis-deepens-as-us-blockade-of-strait-of-hormuz-ignites-oil-price-surge\/60832\/","title":{"rendered":"Geopolitical Crisis Deepens as US Blockade of Strait of Hormuz Ignites Oil Price Surge"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/geopolitical-crisis-deepens-as-us-blockade-of-strait-of-hormuz-ignites-oil-price-surge\/60832\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/geopolitical-crisis-deepens-as-us-blockade-of-strait-of-hormuz-ignites-oil-price-surge\/60832\/#Strait_of_Hormuz_Blockade_Triggers_Energy_Shock\" >Strait of Hormuz Blockade Triggers Energy Shock<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/geopolitical-crisis-deepens-as-us-blockade-of-strait-of-hormuz-ignites-oil-price-surge\/60832\/#Diplomatic_Rift_as_UK_and_Japan_Signal_Caution\" >Diplomatic Rift as UK and Japan Signal Caution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/geopolitical-crisis-deepens-as-us-blockade-of-strait-of-hormuz-ignites-oil-price-surge\/60832\/#Defense_Sector_Responds_with_New_Missile_Venture\" >Defense Sector Responds with New Missile Venture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/geopolitical-crisis-deepens-as-us-blockade-of-strait-of-hormuz-ignites-oil-price-surge\/60832\/#Economic_Fallout_and_Market_Volatility\" >Economic Fallout and Market Volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/geopolitical-crisis-deepens-as-us-blockade-of-strait-of-hormuz-ignites-oil-price-surge\/60832\/#Regional_Tensions_and_Military_Alerts\" >Regional Tensions and Military Alerts<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Oil prices are projected to surge toward $150 per barrel<\/strong> following the collapse of US-Iran peace talks in Islamabad and the subsequent announcement of a US naval blockade of the Strait of Hormuz.<\/li>\n<li><strong>UK Prime Minister Keir Starmer has officially declined to support the blockade<\/strong>, stating that Britain will not be &quot;dragged into war&quot; despite mounting international pressure.<\/li>\n<li><strong>Rheinmetall (<a href=\"\/stock\/RHM\">RHM<\/a>) and Destinus have launched a joint venture<\/strong> to produce advanced cruise missiles and ballistic rocket artillery for Europe and NATO.<\/li>\n<li><strong>Consumer inflation is set to spike<\/strong>, with toy manufacturers warning that crude oil price increases will drive up retail costs by <strong>10% to 40%<\/strong> before the summer season.<\/li>\n<li><strong>China is establishing a new pricing mechanism<\/strong> to link freight transport rates directly to oil costs, aiming to stabilize its online freight platforms amidst extreme energy volatility.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Strait_of_Hormuz_Blockade_Triggers_Energy_Shock\"><\/span>Strait of Hormuz Blockade Triggers Energy Shock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Global energy markets are bracing for unprecedented disruption after US-Iran peace negotiations in Islamabad ended without an agreement. In response, the US has initiated a naval blockade of the Strait of Hormuz, a move that <strong>Onyx Capital Group<\/strong> managing director Jorge Montepeque warns could drive crude prices to <strong>$150 per barrel<\/strong>.<\/p>\n<p>The blockade targets all vessels entering or leaving Iranian ports, potentially removing up to <strong>12 million barrels per day<\/strong> from global supply. Analysts suggest that current market prices of approximately <strong>$103 per barrel<\/strong> do not yet fully reflect the catastrophic impact of a total maritime interdiction in the region.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Diplomatic_Rift_as_UK_and_Japan_Signal_Caution\"><\/span>Diplomatic Rift as UK and Japan Signal Caution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The US-led strategy has exposed significant divisions among Western allies. UK Prime Minister Keir Starmer emphasized that while the reopening of the Strait is &quot;vital,&quot; Britain will not participate in the blockade or be drawn into a direct military conflict.<\/p>\n<p>Similarly, the Japanese government remains undecided about deploying minesweepers to the region, reflecting a cautious approach to the escalating naval tensions. Meanwhile, German Chancellor Friedrich Merz warned that a prolonged Iran war and the resulting energy crisis will have a &quot;long-term impact&quot; on the German economy.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Defense_Sector_Responds_with_New_Missile_Venture\"><\/span>Defense Sector Responds with New Missile Venture<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Amidst the heightened security environment, German defense giant Rheinmetall (<a href=\"\/stock\/RHM\">RHM<\/a>) and Swiss-based Destinus have agreed to form a joint venture, <strong>Rheinmetall Destinus Strike Systems<\/strong>. The entity will focus on the large-scale production of advanced cruise missiles and rocket artillery to bolster NATO&#39;s long-range strike capabilities.<\/p>\n<p>Rheinmetall (<a href=\"\/stock\/RHM\">RHM<\/a>) will hold a <strong>51% stake<\/strong> in the venture, which is expected to begin serial production in the second half of 2026. The partnership aims to transition European defense away from drone-heavy strategies toward more resilient, industrially scalable missile systems.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Fallout_and_Market_Volatility\"><\/span>Economic Fallout and Market Volatility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The energy shock is already rippling through the global supply chain. China has moved to protect its logistics sector by linking freight rates to oil costs, a mechanism designed to help online transport platforms manage sudden price swings.<\/p>\n<p>On the consumer side, the impact is expected to be severe; industry experts project that toy prices will rise by <strong>10-40%<\/strong> as crude oil costs inflate the price of plastics and shipping. In Europe, Swiss total sight deposits fell to <strong>461.3 billion CHF<\/strong> as of April 10, down from <strong>464.3 billion CHF<\/strong>, signaling shifting liquidity in the face of regional instability.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Regional_Tensions_and_Military_Alerts\"><\/span>Regional Tensions and Military Alerts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Security remains fragile across the Middle East as Israeli media reported air raid sirens in northern Israel following the detection of a drone from Lebanon. The incident underscores the risk of a multi-front conflict as regional proxies react to the failed diplomacy in Islamabad.<\/p>\n<p>In a separate statement, China dismissed reports that it is supplying Iran with weapons as &quot;baseless fabrications.&quot; Despite these denials, the Turkish Foreign Minister warned that the &quot;all or nothing&quot; approach to nuclear enrichment talks could lead to further systemic problems for the international community.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Oil prices are projected to surge toward $150 per barrel following the collapse of US-Iran peace talks in 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