Business 12 April 2026 Daily Monitor (Uganda)
Oil Prices Surge, Dollar Strengthens as US Blocks Hormuz Amid Failed Iran Talks
Oil prices jumped sharply after the US announced a blockade on Iranian shipping through the Strait of Hormuz following collapsed peace talks, while the dollar firmed and Asian stocks declined. Investors fear prolonged high energy costs could fuel inflation, prompting expectations of central bank rate hikes. Source: https://www.monitor.co.ug/uganda/news/world/oil-leaps-dollar-firm-and-stocks-wobble-as-us-iran-peace-talks-collapse-5421436
Oil prices rose significantly on Monday after the collapse of US-Iran peace talks over the weekend. The US responded by imposing a blockade on Iranian shipping in the Strait of Hormuz, heightening risks to Middle East energy exports and leaving a fragile ceasefire in doubt.
Brent crude futures climbed 7.3% to $102 per barrel. S&P 500 futures dropped 0.7% during Asian trading, with European futures falling 1.3%. Stocks across Asia, from Hong Kong to Sydney, declined around 1%.
The dollar gained ground, with the euro slipping 0.3% to $1.1687 and other risk-sensitive currencies weakening. US Treasuries and Asian bonds also traded lower, as Japan’s 10-year yield reached a 29-year high of 2.49%.
Analysts noted markets have reverted to pre-ceasefire levels, now factoring in the blockade of up to 2 million barrels of Iranian-linked flows. Concerns persist over potential US strikes on Iran and retaliatory hits on regional energy infrastructure.
President Trump warned that high oil and gasoline prices could linger into the US midterm elections. Inflation fears are mounting, with expectations that central banks like the ECB and Bank of England may raise rates instead of cutting them.
In emerging markets, Hungary’s forint strengthened after an election upset ousted Viktor Orban, potentially unlocking EU funds for Hungary and Ukraine.
This article is based on reporting from the Daily Monitor (Uganda).