global trade tensions

Oil prices surged Friday as US-Iran tensions flared, reversing earlier declines. US strikes on Iranian targets prompted accusations of ceasefire violations, escalating fears over the vital Strait of Hormuz. This geopolitical volatility overshadows concerns about suspicious trading activity linked to policy announcements, impacting global energy supplies and inflation.

Escalating Middle East conflict has choked the world's busiest oil passage, pushing crude prices past $100 per barrel with warnings of a surge to $167 or higher. A prolonged closure of the Strait of Hormuz threatens a severe energy and trade shock, potentially reducing global trade growth significantly and deepening economic uncertainty worldwide.

The Indian rupee plunged to a record low of 95.40 against the US dollar on Tuesday, extending its decline amid escalating Middle East tensions and elevated crude oil prices. This global uncertainty is impacting financial markets, with Indian benchmark indices also trading lower. Analysts anticipate continued pressure on the rupee due to persistent dollar demand and foreign fund outflows.

Nvidia CEO Jensen Huang declared America a priority for advanced chip sales, stating China should not have access to the "latest and greatest" AI technology. However, he urged the US not to abandon the Chinese market entirely, arguing that global sales and increased tax revenues strengthen American economic and national security.

Pakistan is foregoing urgent LNG purchases, betting on a swift de-escalation of Middle East tensions and the timely arrival of cheaper Qatari shipments. This risky strategy comes as the country faces a significant gas deficit and widespread electricity outages, exacerbated by disruptions in the Strait of Hormuz.

The US has tightened its grip on Iran's oil revenue by sanctioning a major Chinese refinery and numerous shipping entities involved in transporting Iranian crude. This move targets a "shadow network" and escalates pressure amid regional tensions. China has criticized the sanctions, urging an end to their political use and warning of harm to legitimate trade.

The US has warned shipping companies against making payments to Iran for safe passage through the Strait of Hormuz, citing sanctions risks. This alert comes amid rising tensions and disruptions to global oil trade, with Iran rerouting vessels and charging fees. The US has also imposed a naval blockade, further straining energy markets and complicating diplomatic efforts.

President Trump has halted 'Project Freedom,' a US military initiative to escort ships through the Strait of Hormuz, citing requests from Pakistan and progress toward a deal with Iran. This pause comes after the US declared the offensive phase of 'Operation Epic Fury' complete, emphasizing defensive actions in the region.

Jharkhand Mukti Morcha (JMM) leaders and workers protested LPG price hikes in Ranchi, citing financial strain on hotels and public hardship. They criticized the Union government's policies, comparing the situation to demonetization. The BJP countered, calling the protest a political stunt and urging the JMM to reduce state VAT on fuel, highlighting issues like electricity tariff hikes in Jharkhand.

UAE motorists will face higher fuel costs in May 2026 as petrol prices see another significant increase. This marks the third consecutive monthly hike, driven by global oil market instability and geopolitical tensions. The latest revisions mean higher expenses for daily commutes and businesses reliant on transportation.

The sell-off was widespread, extending beyond large-cap stocks to the broader market. The Nifty Smallcap 100 index was down 0.5%, while the Nifty Midcap 100 index fell more than 1%.

Market analysts have shifted from the 'TACO' nickname for President Trump to 'NACHO' amid escalating tensions over the Strait of Hormuz. This new label reflects growing skepticism that the crucial global energy route will reopen soon, despite ongoing diplomatic efforts and trade disputes.