The Tamesis
Oil prices rose on Monday after Iran warned merchant ships and tankers to avoid any operations in the Strait of Hormuz that were not coordinated by its military.
Iran’s Fars News Agency said that a US frigate entered the strait Hit by two missiles The Iranian ship fired the missiles and turned around shortly after 10:00 GMT, but the United States quickly denied this.
On Sunday, U.S. President Donald Trump said Washington would begin escorting ships through the waterway. But Iran warned the United States on Monday it must reduce its demands and said any such action would be considered a violation of the ceasefire that has stalled the two-month war in the Middle East.
See also: Oil supply cuts amid transport mission plan and new negotiation proposals
Trump said the United States would take a “humanitarian gesture” to help ships stranded in the Gulf pass through the Strait of Hormuz.
The operation, dubbed Project Freedom, is set to begin on Monday and is supported by guided missile destroyers, more than 100 land- and sea-based aircraft, multi-domain unmanned platforms (drones) and 15,000 military personnel.
But as of this writing, it’s unclear whether the United States will be able to achieve this goal.
International benchmark Brent crude rose 3% to $111 a barrel at 12:10 GMT on Monday, while the U.S. benchmark rose 2% to $104 a barrel.
Investors have been waiting since the U.S.-Iran ceasefire agreement was reached in early April, with only one round of negotiations ultimately inconclusive.
Meanwhile, the United States maintains a blockade of Iranian ports and Tehran closes the strait through which a fifth of the world’s oil and gas normally passes.
Optimism was boosted on Friday after Iran reported that Tehran had submitted the text of a new proposal to Pakistani mediators the night before.
Earnings growth ‘hide war impact’
Even as the crisis in the Middle East continues to unfold, investors have turned their attention to the corporate world and reinvested in the artificial intelligence industry, which has driven several markets to record highs.
After the US-Israeli attack on Iran in late February triggered market turmoil, higher-than-expected reports from Apple, Google, Microsoft and Samsung revived interest in the field of artificial intelligence.
“There is optimism that AI will continue to mask the pain elsewhere,” Swissquote analyst Ipek Ozkardeskaya told AFP.
Earnings for S&P 500 companies are expected to rise 27.1%, the highest level in more than four years, according to Factset.
Stock markets are off to a generally upbeat start to the month, after the S&P 500 and Nasdaq hit record highs in New York last Friday.
Seoul rose more than 5% and Taipei rose more than 4%, setting new records.
South Korean chip giant SK Hynix was the most outstanding performer, rising 12.5%, while rival Samsung rose more than 5%. Taiwanese peer TSMC rose 6.6%.
Hong Kong was boosted by a surge in Chinese technology companies including Alibaba, while share prices also rose in Mumbai, Singapore, Manila, Wellington and Jakarta.
Paris and Frankfurt trade lower in the afternoon, while Tokyo, Shanghai and London were closed for holidays.
The yen surged against the dollar earlier on Monday, fueling speculation of another intervention. The yen rose sharply against the dollar on Friday amid media reports that Tokyo has spent $31 billion to prop up the troubled currency.
Japanese Finance Minister Satsuki Katayama declined to comment on Monday.
trying to reverse sanctions
Meanwhile, China has reportedly ordered private companies such as Hengli Petrochemical (Dalian) Refinery that refine oil from Iran to ignore U.S.-imposed sanctions.
The Ministry of Commerce said on Saturday that the U.S. move was an illegal restriction on normal trade.
State media has previously opposed U.S. sanctions, denouncing them as U.S. “long-arm jurisdiction” but has generally complied with them. But Saturday’s order, described by some media as a provocation, comes just 10 days before Trump’s visit to Beijing.
But whether it will affect state-owned banks is unclear.
Key data around 1200 GMT
North Sea Brent crude (July): rose 2.7% to $111.12 a barrel.
West Texas Intermediate crude oil (June): rose 2.0% to $103.95 a barrel.
TOKYO – Nikkei 225: Market closed for holidays.
USD/JPY: rose to 157.14 yen from 157.06 yen on Friday.
Hong Kong’s Hang Seng Index: rose 1.2% to 26,095.88 (close).
Shanghai – General: The market is closed on holidays.
LONDON – FTSE 100: Closed for holidays.
FRANKFURT – DAX 40: down 0.1% to 24,269.10 points.
PARIS – CAC 40: down 0.9% to 8,045.58.
NEW YORK – Dow Jones: down 0.3% to 49,499.27 (close).
- Jim Pollard, AFP.
Note: The title of the above picture was modified on May 4, 2026.
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