President Donald Trump directed aides to prepare for an extended naval blockade of Iranian ports, pushing Brent crude above $115 per barrel on April 29 and widening what the International Energy Agency called the largest supply shock on record.
Key Takeaways:
Brent crude climbed above $115 per barrel on April 29 as Trump ordered preparations for an extended Iranian naval blockade. The IEA called the Strait of Hormuz shutdown the largest supply shock on record, with 20% of global oil flows halted. The Federal Reserve is expected to hold rates steady today, with Chair Jerome Powell’s comments on inflation risks in focus. Iran Blockade Fears Push Brent Crude Higher, Largest Increase Since June 2022Visa was over 5% higher after posting strong results for the last quarter, while Booking dropped 4% on its earnings. Defensive stocks held ground despite fresh oil gains. European markets also softened, with the FTSE 100 off 0.73% and the pan-European Stoxx 600 down 0.4%.
The confluence of Big Tech earnings, a Fed decision, and an oil shock driven by geopolitics has left traders with little margin for error. Markets remain fluid. Any breakthrough in U.S.-Iran talks or an agreement to reopen the strait could quickly reverse the oil rally, as prior ceasefire announcements have shown. Until then, traders are watching energy supply data, Fed signals, and geopolitical dispatches closely.
