U.S. Blockade of Strait of Hormuz Triggers Energy Spike and Market Volatility

The U.S. Navy has begun blocking all maritime traffic entering and exiting Iranian ports, a move ordered by President Donald Trump after the failure of diplomatic negotiations over the weekend. The blockade targets the Strait of Hormuz, one of the world's most critical energy transit points, escalating tensions between Washington and Tehran. This escalation has immediately shifted market sentiment toward risk-off, sparking fears of a prolonged conflict in the Persian Gulf. The move is expected to severely disrupt global oil supplies, potentially reigniting inflationary pressures and forcing central banks to reconsider interest rate trajectories to combat rising costs. Commodity markets reacted violently to the news, with Brent crude futures jumping approximately 9% to reach nearly $104 per barrel. In London, the benchmark FTSE 100 slipped 0.34% to 10,564.18, having touched an intraday low of 10,525.95 as investors fled to safety. The impact across equity sectors was sharply bifurcated. Energy giants such as Shell and BP saw gains between 1.6% and 2%. Conversely, the broader index was dragged down by losses in retail, banking, and mining. Notable decliners included Associated British Foods, which fell 3.3%, and IAG, which dropped 2.7%, reflecting widespread economic anxiety over the potential for a global energy crisis.