Intense diplomatic communications are underway to gradually reopen the Strait of Hormuz, a critical passage for nearly 20% of the world's energy supply, according to sources cited by Al-Hadath and reported by FXStreet [1]. These talks aim to ease the blockade in exchange for the gradual opening of the strait, with expectations of a breakthrough for ships stranded in the area in the coming hours [1]. The news has triggered a positive reaction in financial markets: WTI oil prices slid over 3% to near $90.00, the US Dollar Index (DXY) declined slightly to 97.90, and S&P 500 futures extended their rally, rising 0.15% to near 7,375 [1].
Shipping giant Maersk's CEO, Vincent Clerc, warned that the Iran war has introduced significant uncertainty for global trade, with higher oil prices costing the company $500 million per month [2]. Maersk's underlying EBITDA fell to $1.75 billion in Q1 2026, a 35% year-on-year decline, though it met market expectations [2]. Revenue dropped 2.6% to $13 billion, beating expectations of $12.5 billion [2]. Clerc cautioned that the impact of the conflict could worsen in the coming months, with cost pressures likely to be passed on to customers, potentially leading to demand destruction and further supply chain disruptions [2].
European stocks opened slightly higher as investors awaited the outcome of reports that Washington and Tehran are nearing a peace agreement to end the war [3]. The pan-European Stoxx 600 index was just above the flatline, with mixed performances across major indices [3]. President Donald Trump stated that a deal was not finalized and threatened to resume military strikes if Iran did not comply, while an Iranian foreign ministry spokesperson confirmed that Iran was evaluating a U.S. proposal [3]. Meanwhile, Shell reported stronger-than-expected Q1 profits of $6.92 billion, surpassing analyst expectations, as the Iran war drove energy prices higher; however, Shell shares opened 2.8% lower after the company trimmed its upcoming share buyback [3].
Norway's central bank raised interest rates by 25 basis points to 4.25%, citing persistent inflation and uncertainty stemming from the Middle East conflict [3]. The ongoing situation in the Strait of Hormuz and the broader Iran conflict continue to inject volatility and uncertainty into global markets, with both energy and shipping sectors particularly affected [1][2][3].
CONCLUSION
The gradual reopening of the Strait of Hormuz has sparked optimism in financial markets, easing oil prices and boosting equities. However, major companies like Maersk and Shell continue to face significant cost pressures and uncertainty due to the ongoing conflict. The situation remains fluid, with market sentiment closely tied to diplomatic developments and the potential for further escalation or resolution.