Oil Crisis Triggers Global Market Shock. WTI crude spiked 28% overnight to $116 per barrel as Strait of Hormuz traffic halted, sending shockwaves through global markets. Gasoline futures surged 17% while Asian stocks plummeted, with Japan's Nikkei 225 down 6.9% and other major indices falling sharply. US stock futures turned deeply red across the board. For America, this represents an inflation problem rather than a supply crisis, since the US imports only 2% of petroleum consumption through the strait. However, Europe and Asia face potential supply shortages if the blockage persists, as these regions depend heavily on Hormuz traffic. US Treasury yields jumped as investors recognize incoming inflation pressures. The volatility underscores how geopolitical disruptions can rapidly reshape energy markets and investor sentiment globally.
