Oil
Global stocks fall as oil prices surpass $100 per barrel
Global stock markets declined as crude prices topped $100 per barrel following supply disruptions in the Strait of Hormuz.
Key points
- Global crude prices rose above $100 per barrel following an Iranian blockade of the Strait of Hormuz.
- The Dow Jones Industrial Average fell 730 points, or 1.5%, amid broader international market declines.
- US President Donald Trump stated that higher oil prices benefit the United States as a major producer.
What happened
Global stock markets declined on Thursday as crude oil prices surpassed $100 per barrel. ABC News reported that the Dow Jones Industrial Average dropped more than 700 points, closing down 1.5%. The S&P 500 fell 1.5%, while the tech-heavy Nasdaq declined 1.7%.
International markets also suffered losses. Tokyo's Nikkei 225 index dropped 1.2%, and the pan-European STOXX 600 index slipped 0.5%.
Why it matters
The market selloff was driven by trader concerns over potential economic fallout from prolonged high energy prices linked to the conflict involving the United States, Israel, and Iran. Oil markets face supply shortages because of an Iranian blockade of the Strait of Hormuz, a critical shipping lane transporting roughly one-fifth of global oil supplies.
Global crude hovered at approximately $101 per barrel on Thursday, marking a 9% increase from the previous day and a 49% rise over the preceding month. US gasoline prices climbed to $3.59 per gallon from $2.94 a month earlier, according to AAA data.
What comes next
US President Donald Trump addressed the rising energy costs in social media statements. According to ABC News, Trump noted the financial benefits to the US as a major oil producer while emphasizing that his primary focus remains preventing Iran from acquiring nuclear weapons.
Meanwhile, Mojtaba Khamenei, the newly installed supreme leader of Iran, indicated that the closure of the Strait of Hormuz should continue as a pressure tool against adversaries, CNBC reported.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
