Gold Prices Drop as US Blockade of Hormuz Raises Inflation Fears

Bullion falls over 2% amid concerns over global energy supply shocks

Apr. 14, 2026 at 5:44am

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An extreme close-up of a tangle of heavy, industrial pipes and machinery, conveying the complex global energy infrastructure that is vulnerable to geopolitical disruptions.The US blockade of a critical global oil chokepoint threatens to further disrupt energy supplies and drive up inflation worldwide.Seattle Today

Gold prices fell sharply after US President Donald Trump ordered a blockade of the Strait of Hormuz, deepening the global energy supply crisis and raising inflation risks, according to analysts.

Why it matters

The Strait of Hormuz is a critical global chokepoint for oil shipments, and any disruption there could significantly impact energy prices worldwide. This latest geopolitical move by the US is expected to exacerbate inflationary pressures that are already high due to the ongoing conflict.

The details

Spot gold prices dropped as much as 2.2% to below $4,650 per ounce as investors grew increasingly concerned about the potential for higher inflation stemming from the US blockade of the Strait of Hormuz, a key global oil shipping route.

  • The blockade order was issued by President Trump over the weekend.

The players

Donald Trump

The President of the United States who ordered the blockade of the Strait of Hormuz.

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The takeaway

The US blockade of the Strait of Hormuz is expected to exacerbate global inflationary pressures, particularly in the energy sector, as the world grapples with an ongoing supply shock and geopolitical tensions.