Updated April 8, 2026 – 7:56 a.mReading time: 2 minutes
Shipping traffic in the Strait of Hormuz is effectively blocked. This caused oil prices to rise sharply. Now there is a glimmer of hope.
After the announcement of a two-week ceasefire in the Iran war, oil prices, which had recently risen sharply, have fallen significantly. The price for a barrel (159 liters) of North Sea Brent oil for delivery in June fell rapidly by around 16 percent to around 92 US dollars (around 79 euros) – the lowest value since mid-March.
For the WTI variety, which is more important for the US market, the price decline was similar with delivery in May. Oil prices are currently the most important indicator of inflation and economic concerns on the market.
The strait is hugely important for global oil and gas trade. Because of the war, the Strait of Hormuz was effectively blocked by Iran. This caused oil prices to rise dramatically. According to Iranian Foreign Minister Abbas Araghchi, safe passage through the strait will now be guaranteed for two weeks.
Stock market prices in East Asia also rose sharply. The Japanese leading index Nikkei 225 rose by 4.4 percent on Wednesday morning (local time). The South Korean Kospi was temporarily up around 6 percent. Due to the strong price movement, the South Korean stock exchange even temporarily suspended trading in order to dampen the extreme volatility. The Australian S&P/ASX 200 also started the trading day positively with an increase of over 2.6 percent.
East Asian economies are heavily dependent on oil shipments via the Strait of Hormuz. The leading indices of the Japanese and South Korean stock exchanges had fallen sharply in some cases due to the Iran war. They are currently five or seven percent below the level at the end of February, i.e. before the start of the Iran war.
