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20/04/26
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Asian Stocks Rise as Strait of Hormuz Tensions Lift Oil Prices
Asian equities moved higher on Monday even as tensions around the Strait of Hormuz pushed oil prices sharply higher and renewed concerns about inflation. The rise in energy costs is complicating the outlook for central banks, which may now be less willing to ease policy and could instead face pressure to keep rates elevated for longer.
Japan’s Nikkei 225 was up nearly 1% at 59,050. Hong Kong’s Hang Seng Index added 0.60% to trade above 26,300, while China’s SSE Composite Index rose 0.59% to around 4,070. South Korea’s Kospi advanced 1.30% to about 6,270. India’s GIFT Nifty edged 0.14% higher to 24,450, pointing to a steady start for the Nifty Index.
Even so, investors remained cautious as the situation in the Gulf stayed unstable. Iran had briefly signaled on Friday that the Strait would reopen, but that position was reversed on Saturday after US President Donald Trump declined to lift the blockade on Iranian ports. The latest developments have raised the risk of further disruption to one of the world’s most important shipping routes.
Iran’s military said the United States had violated the ceasefire by firing on a commercial vessel and warned that retaliation would follow. Trump, meanwhile, said the US Navy fired on and seized an Iranian-flagged cargo ship in the Gulf of Oman after it failed to stop while heading out of the Strait of Hormuz. The incident underscores how quickly the confrontation could spread beyond rhetoric into direct maritime conflict.
Trump also said US officials would travel to Islamabad on Monday for talks with Iran. But Iranian state media reported that Tehran has refused to resume negotiations, citing what it described as unrealistic expectations. The lack of progress in diplomacy leaves markets vulnerable to further swings in oil and broader risk assets if the standoff deepens.
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