Asian stocks slide and crude oil stays elevated as US-Iran truce prospects dim
Updated
Updated · Reuters · May 5
Asian stocks slide and crude oil stays elevated as US-Iran truce prospects dim
11 articles · Updated · Reuters · May 5
MSCI Asia-Pacific ex-Japan fell 0.3%, Australia lost 0.4%, Brent traded at $113.85 and US crude at $105.03 after fresh attacks around the Strait of Hormuz.
US and Iranian forces traded new blows while contesting the chokepoint, though a Maersk-operated US-flagged vehicle carrier exited the Gulf on Monday with US military escort.
Investors also watched possible Japanese yen intervention, upcoming US earnings and payrolls data, while safe-haven demand supported the dollar and gold as energy-shock inflation kept Fed hold expectations intact.
Beyond oil, vital supplies of fertilizer and helium are cut off. How will this commodity crunch reshape our daily lives?
With the world's most critical waterway shut, is a global recession and food crisis now inevitable?
A historic supply shock is underway, so why does the market seem to be betting on a swift resolution?
May 2026 Strait of Hormuz Crisis: Oil Prices Soar Amid Military Escalation and Diplomatic Deadlock
Overview
On March 2, 2026, Iran blockaded the Strait of Hormuz, disrupting about 20 million barrels per day of oil shipments and triggering a sharp 4.5% surge in Brent crude prices. This escalation led to US naval blockades and military strikes, intensifying regional conflict and proxy attacks, while global markets faced turmoil with soaring shipping costs and inflation fears. On May 4, a direct confrontation occurred when Iran blocked a US warship, causing oil prices to jump over 5%, stock markets to fall, and currencies like the yen and euro to weaken sharply. The blockade reignited global inflation, pressured central banks, and heightened recession risks, all amid stalled US-Iran negotiations over nuclear and security demands.