Asian and European stocks plummeted on Monday as Iran’s threat to completely close the Strait of Hormuz sent oil prices soaring.
Analysts’ expectations of an extended energy crunch are weighing on markets: The head of the International Energy Agency said the current crisis was akin to the 1970s oil shock and the fallout from Russia’s invasion of Ukraine combined, while economists have downgraded growth forecasts and central banks are increasingly warning of the risk of accelerating inflation.
US President Donald Trump’s promises to reopen the key waterway have done little to assuage investor fears, forcing Trump to “gift” Tehran the lifting of sanctions on its oil exports in a bid to tame the price spike.
