Oil prices rose sharply and Asian stock markets fell on April 13 after peace talks between the United States and Iran ended without agreement, followed by an announcement from Donald Trump about blocking Iranian ports.
The increase in oil prices and the drop in stock markets highlight the uncertainty caused by ongoing conflict in the Middle East. Investors responded to news of failed negotiations with concern over potential disruptions to energy supplies.
According to AFP, West Texas Intermediate (WTI), a key benchmark for US oil, rose 8 percent to $104.33 per barrel early Monday. Brent crude, which serves as a global reference price, increased by 6.9 percent to $101.73 per barrel.
Meanwhile, major Asian stock exchanges traded lower due to worries about escalating tensions in the region. Stock declines were reported across Tokyo, Hong Kong, Seoul, Shanghai, Sydney, Singapore, Taipei and Jakarta.
Last week saw a different trend when crude prices dropped and stocks climbed after the United States and Iran agreed on a two-week ceasefire for negotiations aimed at ending war in the Middle East. However, those discussions collapsed Sunday during meetings held in Islamabad as both sides expressed pessimism about reaching an agreement.
Following these developments, Trump announced that starting Monday there would be a blockade of the Strait of Hormuz.
