On April 13, global commodities and financial markets fluctuated sharply after the U.S. announced a blockade of Iranian ports. WTI crude oil opened with a surge of 8%–9%, returning above the $105 per barrel mark, while Brent crude also jumped to $103. Rising geopolitical risks have reignited fears of supply disruptions in the Middle East, pushing up costs across the global energy and chemical supply chains.

In contrast to oil’s strong rally, precious metals suffered a sharp decline. Spot gold unexpectedly dropped more than 2%, falling below $4,650 an ounce, with silver falling nearly 4%. Analysts attributed the drop to profit-taking at high levels and a shift toward dollar assets. Meanwhile, U.S. CPI rose 3.3% year-on-year in March, well above February’s 2.4%, with energy inflation surging 10.9% month-on-month.

U.S. stock futures fell roughly 1%, as investors worried that energy inflation could weigh on economic growth. U.S. Treasury yields rose across the curve. With the Middle East remaining the biggest market variable, institutions warned of increased volatility in commodities and continued pressure on global equity risk appetite.