Global stocks slide as Hormuz standoff keeps oil near $90

Elevated crude oil prices driven by the prolonged Strait of Hormuz standoff weighed on equity markets across the world on Wednesday, as investors struggled to look past geopolitical risks even as fresh U.S. inflation data offered some relief.

Markets Fall From Asia to Europe

India's BSE Sensex declined 187.90 points, or 0.24 percent, to settle at 77,966.35, dragged lower by rising energy costs and a sell-off in Tata Group stocks after N Chandrasekaran announced he would not seek reappointment as Tata Sons chairman. The NSE Nifty dropped 35.75 points to end at 24,435.95. The Indian rupee fell 6 paise to 95.42 against the U.S. dollar in early trade, pressured by the sharp rise in Brent crude toward $90 per barrel as hopes for a quick U.S.-Iran agreement faded.psuwatch+1

In Europe, the FTSE 100 gave up an earlier gain and closed 0.1 percent lower, while Germany's DAX slipped 0.2 percent and France's CAC 40 fell 0.5 percent. Hong Kong's Hang Seng had lost 0.6 percent on Tuesday as Hormuz reopening hopes dimmed, while U.S. markets had also ended lower the prior session, with the S&P 500 falling 0.32 percent and the Nasdaq Composite dropping 0.60 percent.chosun+2

Oil Prices and Geopolitical Uncertainty

The crisis centers on the Strait of Hormuz, one of the world's most critical chokepoints for oil shipments. According to Reuters, Iran's Supreme National Security Council reiterated that Tehran would not reopen the strait until its conditions were met. U.S. Central Command said it had redirected 55 vessels, disabled three, and boarded two as of August 11 in enforcement of a blockade on Iran-bound shipping.businessupturn+1

Brent crude traded near $89 per barrel on Wednesday, having climbed roughly 11 percent over the prior four sessions, according to Bloomberg. President Donald Trump claimed the U.S. had "total control" over the waterway and warned Iran against retaliation. However, Pakistan's defense minister told Bloomberg that the U.S. and Iran remained "close to some sort of arrangement".bloomberg+1

Inflation Data Offers Limited Relief

U.S. consumer prices rose 0.1 percent in July, matching forecasts, with annual inflation slowing to 3.4 percent from 3.5 percent. Core CPI rose 0.2 percent monthly and 2.5 percent year-over-year. The data initially lifted sentiment, but markets quickly refocused on the Middle East.businessupturn

"With Brent crude edging closer to the $90-per-barrel mark, investors turned increasingly cautious amid persistent uncertainty surrounding US-Iran negotiations and renewed disruptions to shipping through the Strait of Hormuz," said Hariselvan Radhakrishnan, founder of HST Wealth. The International Energy Agency cut its 2026 global oil demand forecast, now expecting demand to fall by 1.6 million barrels per day, citing the ongoing Hormuz closure and higher fuel prices.psuwatch+1