Oil Over $100 as US Begins Blockade of Iran Ports

Crude oil moved back above $100 early Monday, weighing on Asian share markets as the US prepared a blockade of Iranian ports, while the dollar strengthened and sterling weakened. The S&P 500 and Dow ended lower on Friday with traders looking ahead to first-quarter earnings season, kicking off Monday with Goldman Sachs reporting Q1 results. Gold slipped to around 4,726 per ounce.

Equities

The FTSE 100 finished Friday flat at 10,600.5, securing its third consecutive week of gains as investors held back ahead of US–Iran talks over the weekend. The FTSE 250 performed more strongly, rising 0.7% on the day and recording a second straight weekly advance.

Earlier in the week, equities had moved higher after a temporary ceasefire between Washington and Tehran eased pressure on oil prices, although crude remained close to $100 per barrel due to ongoing supply disruption.

AO World closed around 7% higher on Friday after stating that full-year profits are expected to come in at the top end of guidance, supported by market share gains across its core categories. B&M dropped 4.6% after announcing the departure of interim CFO Helen Cowing after less than five months in the role.

Wizz Air rose 7.2% following reports of progress in Ukraine–Russia negotiations, lifting sentiment around European travel stocks. BAE Systems fell 3.3% as defence shares pulled back despite continued geopolitical tensions.

The S&P 500 ended Friday down 0.11% at 6,816.89, while the Dow Jones Industrial Average fell 0.56%. The Nasdaq Composite outperformed, rising 0.35%, helped by strength in technology stocks. Despite the mixed finish, all three indices posted their strongest weekly gains since November as markets recovered earlier losses tied to geopolitical tensions.

Taiwan Semiconductor’s US-listed shares gained 1.4% after reporting first-quarter revenue ahead of expectations. CoreWeave jumped 10.9% following news of a multi-year agreement with Anthropic, highlighting continued demand for AI infrastructure.

Forex & Commodities

The US dollar strengthened late on Sunday and into early Monday trading after talks between Washington and Tehran failed to deliver a peace agreement. The move gathered pace as Asian markets opened, with the euro falling to 1.1660 against the dollar, while the dollar edged higher against the Japanese yen to 159.4. Sterling also came under pressure, slipping to weaker levels as investors reduced exposure to risk-sensitive currencies.

Last week, US inflation rose 3.3% year-on-year in March, broadly matching forecasts, while a sharp rise in fuel costs contributed to the largest monthly price increase in nearly four years. Consumer sentiment fell to a record low, reflecting growing concern about the economic outlook.

Early on Monday, the stronger dollar continued to weigh on gold, which fell to 4,726 per ounce after earlier touching 4,643, its lowest level since 7 April. The decline followed several weeks of losses, with bullion now well below levels seen at the end of February. The shift reflects reduced expectations for US interest rate cuts this year, with higher energy prices feeding into inflation concerns.

Oil prices moved sharply higher late on Sunday and remained elevated early on Monday, with Brent crude trading at 101.9 per barrel and US crude at 103.8. The gains followed confirmation that the US Navy is preparing to begin a blockade of maritime traffic linked to Iran through the Strait of Hormuz. This route typically handles a significant share of global oil flows, and restrictions have added to supply concerns.