Markets Storm After The Closure Of The Strait Of Hormuz

Oil and gas prices have skyrocketed.

Oil prices rose on the morning of April 20. Quotes reacted to the re-closure of the Strait of Hormuz by Iran and the seizure of an Iranian-flagged ship by the United States, reports The Guardian (translation - "Unian").

According to the investing portal, as of 11:53 Kiev time, the cost of Brent oil rose by $5.24 - to $95.62 per barrel. American oil brand WTI rose by 5.17 dollars - up to 87.76 dollars per barrel.

Senior analyst of financial markets international fintech company capital.com Kyle Rodda notes that previously reigned confidence that the peace agreement between Iran and the United States will be concluded. Now hopes for de-escalation have been jeopardized.

At the same time, gas prices in Europe have risen. Futures for "blue fuel" with delivery next month rose by 5.7% - to about 41 euros per megawatt-hour (about 432-443 euros per thousand cubic meters).

The repeated closure of the Strait of Hormuz hit European stock markets. In London, the FTSE 100 index fell 0.4 percent to 10,626 points, retreating from a six-week high reached late last week. Germany's DAX fell 1.3 percent and Italy's FTSE Mib fell 1.1 percent.

In addition, airline stocks fell in price. Securities of IAG, the parent company of British Airways, fell by 2.8% in early trading, while Wizz Air shares lost 4.2% and EasyJet lost 3.5%. Lufthansa and Air France shares fell 3.5% and 3.6% respectively.

The publication explains that the re-closure of the Strait of Hormuz could increase fears of aviation fuel shortages in the coming weeks. Meanwhile, shares of energy companies went up. In particular, securities of BP and Shell rose by 2.7% and 2.4% respectively.

Friday's euphoria gave way to confusion about the situation in Hormuz. Although Iran has announced its closure, markets seem to be optimistic, as always during this crisis," said Chris Beauchamp, chief market analyst at investment and trading platform IG Chris Beauchamp.

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