By Our Correspondent

National News – Global oil prices surged and stock markets fell on Monday, April 13, 2026, after United States President Donald Trump announced a military blockade of the Strait of Hormuz following collapsed US-Iran peace talks in Islamabad.

The move came after negotiations led by US Vice President JD Vance and Iranian Foreign Minister Abbas Araghchi broke down over Iran’s nuclear programme and sanctions demands.

In response, Trump said the US Navy would begin blocking vessels entering or leaving Iranian ports, escalating fears of renewed conflict in the Middle East.

Oil prices jumped more than eight percent, briefly topping 100 dollars per barrel, as investors worried about disruption to the Strait of Hormuz, through which about one-fifth of global crude flows.

Global equities declined across Asia and Europe while safe-haven assets strengthened amid heightened geopolitical uncertainty.

Analysts warned that even if diplomacy resumes, energy markets may remain volatile for weeks due to supply risks and damaged infrastructure concerns.

The Strait of Hormuz remains one of the world’s most critical oil transit chokepoints, making any military disruption a major driver of global energy inflation and market instability.

Observers also noted that diplomatic uncertainty between Washington and Tehran continues to weigh heavily on investor confidence and long-term economic forecasts.

The announcement has raised concerns among shipping companies, insurers, and oil producers who depend on stable passage through the Persian Gulf region.

Weeks of previous ceasefire optimism were reversed as the latest breakdown in talks revived fears of broader regional conflict involving multiple Middle East actors.

Market experts say the situation could keep Brent crude above the $100 threshold if tensions persist, with global supply chains under continued pressure from geopolitical risk.

This escalation underscores how quickly geopolitical decisions can ripple through global markets, affecting energy security, inflation expectations, and economic stability across both developed and emerging economies.

Trading floors worldwide are expected to remain volatile as investors await further diplomatic signals and potential military developments in the region.

Further updates are expected as tensions continue to unfold globally.