Iran Shuts Strait of Hormuz: Oil Prices Surge as US Markets See Record Foreign Inflows

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Foreign Money Floods US Markets as Iran Shuts Strait of Hormuz Again

In 2025, foreign investors bought a record $1.55 trillion worth of US financial assets, according to the Treasury Department. This happened despite Iran again threatening to close the Strait of Hormuz on April 21st.

Global markets are currently being tugged in opposite directions: lots of money is flowing in, but tensions in the Middle East are increasing.

Record Capital Inflows Defy Geopolitical Risk

So far in 2026, there have been only nine days where US stocks, the dollar, and bonds all fell at the same time. This trend suggests it could be the year with the fewest such declines in over a decade.

In contrast, the 1990s typically saw between 30 and 60 days with extreme heat each year, with 1994 experiencing the highest number at 62. Additionally, foreign investors currently hold a record amount – almost $21 trillion – in US stocks.

Despite increasing global instability, investors still see the US as a secure place to put their money, according to recent data.

Iran Shuts Down the Strait of Hormuz Again

Tasnim News Agency, a news outlet with ties to Iran’s Revolutionary Guard, announced that the Strait of Hormuz is now closed indefinitely.

Iran has reportedly closed the Strait of Hormuz, according to the semi-official Tasnim News Agency, which has ties to the Islamic Revolutionary Guard Corps. The closure, announced as being “until further notice,” follows a reported attack.

— *Walter Bloomberg (@DeItaone) April 21, 2026

The agency mentioned a recent attack and the continuing practice of the US impounding ships connected to Iran, such as the tanker M/T Tifani.

This vital waterway usually carries around 21 million barrels of oil daily, representing about 20% of the world’s total oil supply. Recent disruptions have already led to contract cancellations and caused the price of Brent crude oil to rise back to nearly $95 a barrel.

Iran states the ban will continue until it gets assurances that the US will remove its limitations on shipping.

Failed Talks Raise Stakes for US-China Summit

The Strait of Hormuz has been closed again shortly after peace negotiations in Islamabad fell apart. Vice President JD Vance reported that after 21 hours of talks, Iran wouldn’t agree to the US’s conditions regarding its nuclear program and access to the strait.

AgResource warned that the diplomatic breakdown could delay the planned mid-May US-China summit.

My research indicates that the ongoing U.S.-Iran talks in Pakistan are facing potential difficulties, and this could push back the planned U.S.-China summit scheduled for mid-May. I’m also tracking developments in agricultural trade. According to AgResource, Chinese soybean exports are expected to decrease soon, which will likely cause a temporary slowdown in U.S. trade. However, if China starts buying soybeans again, we could see soybean futures prices increase. Currently, soybeans are trading at around $11.88 per bushel, up half a percent.

As a crypto investor, I’m keeping a close eye on the situation in the Middle East. China’s big reliance on oil shipments through the Strait of Hormuz means they really want things to stay calm in the region. But with the current ceasefire looking like it might end around April 22nd, we’ve got a very short time frame before things could heat up again, and that definitely adds some risk to the markets.

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2026-04-22 03:21