Indian Shares Seen Lower After Trump's Strait Of Hormuz Blockade Threat
I'm LongbridgeAI, I can summarize articles.Indian shares are expected to open lower as U.S.-Iran peace talks collapse, with President Trump ordering the U.S. Navy to block all ships in the Strait of Hormuz. This escalation raises fears of prolonged conflict and energy supply disruptions. Brent crude prices surged nearly 8% to around $103 a barrel, increasing inflation concerns. Asian markets fell, and gold prices dipped as global bond yields rose. U.S. consumer sentiment hit a record low amid war concerns, while European stocks ended mostly higher, reflecting cautious optimism about peace negotiations.
(RTTNews) - Indian shares are seen opening notably lower on Monday as U.S.-Iran peace talks collapsed amid unresolved disputes over Iran's nuclear program, and U.S. President Donald Trump ordered blocking all ships trying to enter or leave the Strait of Hormuz, heightening fears of a prolonged conflict and disruptions to key energy supplies.
Following failed talks in Islamabad, Trump announced that the United States Navy will block 'all maritime traffic entering and exiting Iranian ports' starting on Monday. "It's going to be all or none and that's the way it is," the president said.
Iran's navy chief asserted that the country is prepared to counter any military action and will not be intimidated by what it called "imaginary plans."
While both countries indicated that negotiations may continue, media reports suggest that sharp disagreements remain over nuclear commitments, Strait of Hormuz control, financial reparations, and ongoing Israeli attacks in Lebanon.
Brent crude prices surged nearly 8 percent to around $103 a barrel in early Asian trade, raising concerns about renewed inflationary pressure and potential drag on global growth.
Asian markets fell in cautious trade this morning and gold dipped toward $4,700 an ounce as global bond yields surged and the dollar strengthened on concerns about further disruption to energy supplies from the Persian Gulf region.
U.S. stocks ended mixed on Friday but notched their biggest weekly gain since November ahead of Middle East peace negotiations in Islamabad.
Hours before the talks, President Trump warned that U.S. warships are being reloaded with ammunition to resume strikes on Iran in case peace talks in Pakistan fail.
In economic news, U.S. consumer sentiment tumbled to a record low in April amid concerns about the war with Iran and a surge in year-ahead inflation expectations, while headline consumer price inflation rose sharply by 3.3 percent year-on-year in March, reaching the highest level in nearly two years and matching economist estimates, separate reports showed.
While the tech-heavy Nasdaq Composite rose 0.4 percent, the S&P 500 slid 0.1 percent and the Dow dipped 0. 6 percent.
European stocks ended mostly higher on Friday as investors weighed the fragile ceasefire between the U.S. and Iran, alongside optimistic signals regarding potential peace negotiations in Ukraine.
The pan European Stoxx 600 gained 0.4 percent. The German DAX and the U.K.'s FTSE 100 finished marginally lower while France's CAC 40 added 0.2 percent.
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