Oil and US stock futures rise on Hormuz plan and EU auto tariffs
Updated
Updated · The Wall Street Journal · May 4
Oil and US stock futures rise on Hormuz plan and EU auto tariffs
13 articles · Updated · The Wall Street Journal · May 4
Brent climbed more than 2% above $110 a barrel after swinging from $105.55, while Dow-linked futures lagged and Europe's Stoxx 600 slipped on weaker auto stocks.
Investors are weighing whether President Trump's plan to escort commercial shipping through the Strait of Hormuz will restore flows or heighten tensions with Tehran.
The S&P 500 and Nasdaq closed at record highs on Friday, South Korea's Kospi jumped more than 5%, and markets now await major earnings and Friday's US jobs report.
Why are US stocks hitting record highs while a major oil crisis threatens a global recession?
Can 'Project Freedom' reopen the Strait of Hormuz without triggering a direct war with Iran?
Is the Hormuz crisis the start of a new era where global shipping lanes become political weapons?
Strait of Hormuz Blockade in May 2026 Traps 20% of Global Oil Supply, Driving Prices Above $110 per Barrel
Overview
In early May 2026, the United States extended its naval blockade on Iranian ports while Iran enforced strict shipping restrictions, effectively closing the Strait of Hormuz and reducing shipping traffic by 95%. This blockade triggered a sharp surge in oil prices, pushing Brent crude above $108 per barrel and causing U.S. gasoline prices to hit $4.39 per gallon. The disruption also led to severe shortages in key commodities and a dramatic spike in Asian LNG prices. These energy shocks intensified global inflation and economic uncertainty, prompting central banks to hold rates cautiously. Diplomatic deadlock between the U.S. and Iran, fueled by incompatible peace proposals and internal hardline pressures, has prolonged the crisis, driving shifts toward energy diversification and exposing stark regional economic disparities.