Stocks Slip on Threat of Hormuz Blockade

Investors brace for earnings season as oil prices surge

Apr. 13, 2026 at 10:39am

Got story updates? Submit your updates here. ›

An extreme close-up of a complex network of heavy, industrial pipes and machinery, representing the vital global oil transit infrastructure that is under threat of disruption.As tensions escalate over the Strait of Hormuz, a dramatic close-up of the critical infrastructure that transports much of the world's oil supply.NYC Today

Stocks are declining and oil prices are rising after President Trump threatened to impose a blockade on the Strait of Hormuz, a vital global oil chokepoint, in an effort to pressure Iran. Investors are also closely watching the start of the U.S. corporate earnings season this week, with several major banks set to report results.

Why it matters

The Strait of Hormuz is a critical global oil transit route, with around 20% of the world's oil supply passing through it. Any disruption to shipping in the strait could send oil prices soaring and rattle financial markets. Meanwhile, the upcoming earnings season will provide insight into the health of the U.S. economy and corporate profitability.

The details

President Trump said the U.S. would impose its own blockade on the Strait of Hormuz, a move that would further reduce oil flows since Iranian vessels have been sailing through the strait since the conflict started. Investors will be closely monitoring the situation in the Middle East as well as the start of the U.S. corporate earnings season, with major banks set to report results this week.

  • President Trump's threat to blockade the Strait of Hormuz came on April 12, 2026.
  • The U.S. corporate earnings season kicks off this week.

The players

President Trump

The President of the United States who threatened to impose a blockade on the Strait of Hormuz.

Iran

A country that has been sailing vessels through the Strait of Hormuz, a vital global oil chokepoint, amid ongoing tensions with the U.S.

Got photos? Submit your photos here. ›

What’s next

Investors will be closely watching to see if the U.S. follows through on the threat to blockade the Strait of Hormuz, and how that would impact global oil supplies and financial markets. The upcoming corporate earnings reports will also be closely scrutinized for signs of economic health.

The takeaway

The threat of a Hormuz blockade and the start of earnings season have created significant uncertainty in the markets, underscoring the fragility of the global economy and the potential for geopolitical tensions to roil financial assets.