In early April 2026, a two-week ceasefire between the U.S. and Iran sparked a sharp drop in oil prices and a surge in global stock markets, easing inflation concerns and lowering U.S. Treasury yields. However, ongoing military actions and deep mistrust led to the ceasefire's collapse, prompting the U.S. Navy to blockade the Strait of Hormuz, a vital oil route. This blockade, combined with Iranian attacks on tankers, caused oil prices to soar above $107 per barrel, triggering global supply chain disruptions, investor panic, and rising stagflation risks. Inflation pressures forced central banks to hold interest rates steady amid a darkening economic outlook, while diplomatic deadlocks and infrastructure damage kept the region unstable and markets volatile.