US-Iran War Update: How the Strait of Hormuz Could Move Oil Prices and Global Stock Markets - India Infoline

The latest escalation between the US and Iran has refocused market attention on the Strait of Hormuz, a narrow waterway that serves as a critical chokepoint for global oil shipments. Approximately one-fifth of the world's petroleum consumption passes through this strait, meaning any disruption—whether from military confrontation, sabotage, or insurance re-pricing—can quickly translate into higher crude prices. Because oil is a foundational input across transportation, manufacturing, and petrochemicals, sustained price increases tend to feed into inflation expectations, which in turn influence central bank policy and equity valuations.

For global stock markets, the impact is typically twofold. Energy and shipping sectors may benefit from rising prices, while airlines, consumer goods, and import-dependent economies face margin pressure. Additionally, heightened geopolitical risk often drives investors toward safe-haven assets such as gold and government bonds, leading to short-term volatility in indices. The key variable to watch going forward is whether the strait remains open and whether diplomatic channels reopen, as a full blockade would represent a far larger supply shock than markets currently price in.