News: Oil prices surged after Donald Trump threatened a naval blockade of the Strait of Hormuz following the failure of US-Iran peace talks in Pakistan. Brent Crude futures for May delivery jumped 8.7% to $US103.80 a barrel, and US WTI oil rose 8% to $US104.39 a barrel. The Australian share market opened down 0.5%, with energy stocks being the only sector to gain. Viva Energy shares jumped 7.2% to $2.69, and Karoon Energy rose 7%. Gold prices fell 1.5% to $US4676 an ounce, and Bitcoin tumbled 3.5% to $US70,725. Analysts at Macquarie warned of a potential slowdown in the housing market and expect the RBA to lift the cash rate by 50 basis points to 4.6% by September.
AI Analysis: The threat of a Strait of Hormuz blockade significantly increases geopolitical risk and disrupts global energy supply chains, leading to price increases and market volatility. The negative reaction in the ASX and cryptocurrency markets indicates a broader risk-off sentiment.
