April 2, 2026 — Oil prices rose and stock markets fell after US President Donald Trump’s prime-time address on the war with Iran, as global concern grew over disruptions to shipping through the Strait of Hormuz and the prospect of wider conflict.
Markets and shipping
Brent crude jumped about 5% to $106.22 a barrel and US benchmark crude rose roughly 4.2% to $104.36, after Iran’s near-closure of the Strait of Hormuz disrupted flows through a waterway that normally carries about a fifth of the world’s crude. Asian shares fell, with Tokyo’s Nikkei down 1.4%, South Korea’s Kospi sliding 3.4% and Hong Kong’s Hang Seng losing 0.8%. US and European futures also retreated.
The closure of Hormuz — prompted by Iranian attacks on commercial shipping and the wider US-Israeli campaign against Iran — has forced some countries to consider alternative routes and security arrangements. The disruptions have sent oil prices past $100 a barrel and raised fears of a prolonged energy shock.
Trump’s address
In his address, Trump said US operations had “dramatically curtailed” Iran’s missile and drone capabilities, that Iran’s navy and air force were “in ruins,” and asserted that Iranian leaders were “now dead.” He pledged to “hit them extremely hard over the next two to three weeks” and to “bring them back to the Stone Ages,” while telling countries reliant on Hormuz oil to “go get your own oil” and insisting the US “won’t be taking any in the future.”
Trump also claimed the conflict was nearing its end and that core US objectives were “nearing completion,” but did not provide a firm timeline. His remarks failed to calm markets or many foreign leaders.
Global diplomatic responses
The United Kingdom convened a virtual summit of about 35 nations, chaired by Foreign Secretary Yvette Cooper, to discuss reopening the Strait of Hormuz and ways to restore freedom of navigation. Germany joined the UK-led talks alongside partners such as France, Italy, Canada and the UAE; the United States was not expected to attend.
French President Emmanuel Macron, on an official visit to South Korea, criticized Trump for “contradicting” himself and called proposals to reopen Hormuz by force “unrealistic,” warning such an operation would be prolonged and dangerous given Iran’s missile and Revolutionary Guard capabilities.
Russia signaled openness to mediate. Kremlin spokesman Dmitry Peskov said President Vladimir Putin remained in contact with regional leaders and that Moscow could contribute to efforts to transition the military situation to a peaceful course if required.
China blamed what it described as an “illegal military operation” for the blockade of Hormuz and called for an immediate end to hostilities, urging diplomacy to prevent further escalation and to limit global economic harm.
Iran and regional fighting
Iran’s military vowed “crushing” attacks on the US and Israel after Trump’s speech. State media quoted the Khatam al-Anbiya operational command as saying the war would continue until the US faced “humiliation, disgrace” and “surrender.” Iran also launched missiles at Israel, and the UAE reported its air defenses responding to missile and drone threats.
The conflict has inflicted heavy damage across the region: drone and missile strikes have hit oil infrastructure and depots in Iraq, and Israeli strikes have targeted locations in Lebanon, including killing Hezbollah commanders, according to Lebanese authorities and Israeli statements. Large funerals in Tehran (for example, for IRGC commander Alireza Tangsiri) and heightened domestic mobilization in multiple countries have underscored the conflict’s intensity.
Iraq’s export shift and economic strain
Iraq, which depends on oil for roughly 90% of state revenue, has begun routing crude through Syria to access Mediterranean export outlets. State marketer SOMO said it signed a contract to export 50,000 barrels per day of Basra medium crude via Syria and planned to increase volumes, though pipeline capacity and logistics limit how much can be moved this way. Southern Iraqi production has plunged since the war began, falling from about 3.1 million barrels per day to near 900,000 bpd in Basra province, and Iraqi officials warned cash reserves could be exhausted by mid-May without resumed oil sales.
The transit assurances Iran offered for shipments through Hormuz are complicated by the fact that Iraq lacks its own tanker fleet and must rely on foreign-flagged vessels and charterers willing to accept heightened risks.
Fact checks and contested claims
DW’s fact-checking team and other observers scrutinized Trump’s assertions, including claims that the US is “totally independent” of Middle Eastern oil and that Iran’s original leaders are all dead. Analysts noted some claims were overstated or lacked supporting evidence; independent verification remains difficult amid active conflict and propaganda from multiple sides.
Outlook
With military strikes, shipping interruptions and regional reprisals ongoing, energy markets and global investors are pricing in sustained geopolitical risk. Diplomatic initiatives — from the UK-led talks on Hormuz to offers of Russian mediation and calls for de-escalation from China and other states — face the immediate challenge of securing shipping lanes while preventing a broader conflagration.