Global Markets Rattle as Energy Prices Spike After U.S. Moves to Restrict Hormuz Passage

International financial markets faced sharp turbulence on Monday following renewed geopolitical tension in the Middle East, as crude oil prices climbed past the $100-per-barrel mark while equities declined across major regions.

The disruption came after peace negotiations between the United States and Iran collapsed over the weekend during talks held in Islamabad. The breakdown was followed by an announcement from U.S. President Donald Trump, who declared plans for a naval blockade targeting the Strait of Hormuz, a critical route for global oil transportation.

The announcement immediately triggered a surge in energy prices, with traders reacting to fears of constrained global supply. Brent crude and U.S. oil benchmarks both jumped sharply, reversing earlier expectations of price stability.

At the same time, global stock markets moved into negative territory as investors responded to rising inflation risks and uncertainty over energy security. Airline and travel-related shares were among the hardest hit due to expectations of higher fuel costs, while energy companies recorded gains amid the price rally.

Analysts warn that any prolonged disruption in the Strait of Hormuz could deepen inflationary pressure worldwide, given its role as a major channel for global oil shipments. The situation has intensified concerns over supply stability and broader economic outlooks in the coming weeks.