Hormuz Strait Standoff Pushes Crude to $126, Rupee Slides Past 95 Against Dollar

Oil prices jumped over 13% in the last 24 hours, driven by market anxiety over supply disruptions in the Persian Gulf region and the possibility of escalation between Washington and Tehran.

May 1, 2026 | Washington/Tehran: The standoff intensified after Trump posted a provocative message on social media, stating that a “storm is coming and no one can stop it,” along with an image referencing the Strait of Hormuz. Iranian Supreme Leader Mojtaba Khamenei responded with a stern warning, declaring that the only place for the US in the Persian Gulf would be “at the bottom of the sea,” further dimming hopes of peace negotiations.

The latest spike in crude has reignited memories of the Russia-Ukraine conflict in 2022, when prices crossed $120 per barrel. Analysts said investors are now pricing in a sustained geopolitical premium as long as shipping routes through Hormuz remain under threat. The strait is a crucial global chokepoint, carrying a major share of the world’s oil trade.

Meanwhile, the Indian rupee weakened sharply as rising crude prices and foreign institutional investors pulling funds from equity markets pressured the currency. The rupee fell 19 paise on Thursday to close at 95.02 per US dollar, crossing the 95 mark for the first time since March. The last time the rupee touched a similar level was March 30, when it hit 95.23.

Market participants said the Reserve Bank of India is closely monitoring the situation and may continue intervention measures to curb volatility if oil prices remain elevated.

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