Finance
Trading Day: Oil Strait Back up Again
Published by Global Banking & Finance Review®
Posted on April 2, 2026
4 min readLast updated: April 2, 2026
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Oil prices surged sharply—WTI up ~11%, Brent ~7%—amid renewed Strait of Hormuz tensions. Blue Owl capped withdrawals from two credit funds amid redemption pressures. U.S. job growth appears stalled ahead of Friday’s payrolls report.
Oil Prices Jump 11% as Strait of Hormuz Closure Hits Global Markets
By Jamie McGeever
Global Market Turmoil and Key Financial Developments
ORLANDO, Florida, April 2 (Reuters) - World markets reeled on Thursday, with stocks mostly lower and U.S. oil soaring 11% after President Donald Trump indicated there will be no let-up in the war on Iran, meaning the Strait of Hormuz won't be opening up soon, as traders had hoped.
U.S. Labor Market Outlook Amid Geopolitical Tensions
In my column today I look at the U.S. labor market ahead of Friday's nonfarm payrolls. From the outside, it looks stable, with labor supply and demand roughly balanced. But job growth has ground to a halt and that isn't good, especially in light of the economic pressures triggered by the Iran war.
Recommended Reading for Market Insights
If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
- World anxious to open Hormuz Strait while Trump and Irantrade threats
- U.S. labor market remains stable; trade deficit widensin February
- Blue Owl limits withdrawals from two funds afterhistoric surge in redemption requests
- Oil shock resilience in March - or smoke and mirrors? Mike Dolan
- Central banks' inflation mood puzzle: more judgment thanscience
Today's Key Market Moves
- STOCKS: Asia slumps, Europe ex-UK dips, Wall Streetmixed. Japan -2%, South Korea -5%, FTSE 100 +0.7%, Wall Streetnarrowly mixed.
- SECTORS/SHARES: Six S&P 500 sectors rise, five fall.Real estate +1.5%, tech +0.7%; consumer discretionaries -1.5%.Intel +5%, Tesla -5%.
- FX: Dollar rebounds broadly. Indian rupee surges 2% forbest day since 2013 after RBI curbs FX speculation.
- BONDS: U.S. Treasuries rise, yields -2 bps at longerend.
- COMMODITIES/METALS: Oil soars. Brent +7% to $108/bbl,WTI +11% to $111. WTI has biggest dollar gain in five years.Gold -2%.
Today's Talking Points
Seeking a Strait Answer
If there's one thing driving financial market sentiment and pricing more than anything else, it is the ebb and flow of expectation around when the Strait of Hormuz will reopen. Thursday's trading was a microcosm of that.
Trump strongly indicated on Wednesday there is no imminent ceasefire, deal, or off-ramp. Stocks slumped, oil soared. Some of these moves were reversed on Thursday on news Iran and Oman are to monitor traffic in the Strait, fueling hopes of a reopening. Meanwhile, the war is about to enter its sixth week.
Blue Owl Blues
Turmoil in private credit markets deepened on Thursday after Blue Owl said it is limiting withdrawals from two funds after record redemption requests, renewing fears over valuations, lending standards, and potential systemic risks in the opaque sector.
This is the latest of many cases of investors wanting to get their money out of private credit funds, but having these withdrawals capped. Limiting redemptions only intensifies these concerns though, and is sure to draw even closer attention from regulators.
The Fragile 'No Hire' U.S. Jobs Market
The March U.S. employment report is released on Friday, and is expected to show net 60,000 jobs added and an unchanged unemployment rate of 4.4%. On the face of it, that doesn't look too bad, but below the surface there's cause for concern.
Job growth is stagnant, with the six-month average payrolls close to zero. The breakeven payrolls level is close to zero, with labor supply cratering too. This is not a healthy labor market, and the inflationary and economic pressures ignited by the Iran war could expose its frailties.
What Could Move Markets Tomorrow?
- Many markets around the world closed, U.S. bond marketopen until noon
- Developments in the Middle East
- Energy market moves
- Japan PMIs (March, final)
- U.S. nonfarm payrolls (March)
- U.S. PMIs (March, final)
Additional Information
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Disclaimer
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(Reporting by Jamie McGeever; Editing by Nia Williams)
Key Takeaways
- •Strait of Hormuz disruption deepens oil supply fears; IEA deployed record reserves to calm markets
- •Blue Owl’s caps on redemptions highlight growing fragility in private credit amid investor flight
- •US labor market shows stagnating job growth, six‑month average near zero, raising concerns before payrolls data
Frequently Asked Questions about Trading Day: Oil Strait back up again
1Why did oil prices surge on Thursday?
Oil prices surged 11% after President Trump signaled no let-up in the conflict with Iran, keeping the Strait of Hormuz closed, restricting oil supply.
2How did global stock markets react to the Strait of Hormuz news?
Global stock markets mostly moved lower as the ongoing closure of the Strait of Hormuz fueled uncertainty and volatility across regions.
3What is the latest concern in the US labor market?
The US labor market appears stable but job growth has stagnated, with the six-month average for payrolls close to zero, raising concerns about underlying weakness.
4What caused turmoil in private credit markets?
Private credit market turmoil increased after Blue Owl limited withdrawals from two funds due to record redemption requests, raising fears about liquidity and valuations.
5Which economic data are traders watching next?
Traders are watching the upcoming US nonfarm payrolls report, developments in the Middle East, and global PMIs for further market direction.
