Blockade Risks Affect Global Markets (04.29.2026)

Markets remain volatile as Trump orders a prolonged naval blockade of the Strait of Hormuz to pressure Iran, further restricting global oil shipments. 

The euro hovered near two-week lows around 1.17, while gold dropped below $4,600 and silver stayed weak near $73 as inflation fears reinforced expectations of prolonged high interest rates. The Japanese yen edged closer to the 160 level despite signs of gradual tightening from the Bank of Japan, and sterling faced both global and domestic headwinds near $1.35. With key economic data and central bank decisions ahead, markets remain sensitive to both policy signals and developments in the Middle East.

Euro Lingers Near Lows

The Euro is trading near $1.17, hovering close to two week lows as geopolitical uncertainty and major economic data weigh on sentiment. Investors are awaiting Eurozone GDP and inflation figures alongside pivotal central bank decisions. Recent caution followed President Trump's rejection of Tehran’s latest diplomatic proposal, heightening regional tensions. Although the ECB is projected to maintain current interest rates, rising inflation expectations suggest a continued hawkish bias among policymakers for the coming months.

For EUR/USD, the initial resistance is seen at 1.1750, while the closest support is positioned at 1.1670.

Gold Slips Below $4,600

Gold prices dropped below $4,600 per ounce on Wednesday, hitting a one month low as the Strait of Hormuz closure intensifies inflation fears. While Donald Trump noted Tehran's request to lift the US naval blockade, the International Energy Agency’s warning of a major supply shock has kept markets on edge. These persistent energy disruptions reinforce expectations that central banks will maintain high interest rates, further dampening the appeal of gold as a non yielding asset.

First resistance is seen at $4640, with initial support near $4550.

Yen Nears 160 as BoJ Signals Gradual Tightening

The Japanese yen hovered around 159.6 per dollar on Wednesday, remaining dangerously close to the critical 160 threshold. Despite the Bank of Japan maintaining rates at 0.75%, officials raised inflation forecasts while lowering growth outlooks amid global instability. Governor Kazuo Ueda hinted at a steady tightening path, supported by several hawkish policymakers. Also, Satsuki Katayama reaffirmed that the government remains ready to intervene should the currency experience further excessive volatility.

Initial resistance stands at 159.90, while the first support is located at 158.80.

Sterling Faces Double Pressure

The British pound dipped toward $1.35 as geopolitical friction and domestic political tension dampened investor appetite. Sentiment soured following reports of Donald Trump’s dissatisfaction with Tehran’s latest diplomatic proposal regarding nuclear negotiations. Locally, Prime Minister Keir Starmer faces a significant parliamentary challenge over a controversial ambassadorial appointment. With the Bank of England expected to hold interest rates steady this week, the currency remains sensitive to both these evolving political risks and global energy developments.

From a technical view, resistance stands near 1.3570, with support around 1.3480.

Silver Keeps Under Pressure

Silver held near $73 per ounce on Wednesday, following a steep drop as the Strait of Hormuz closure heightens global inflation fears. The International Energy Agency’s warning of a major supply shock underscores the severity of Middle East energy disruptions. These tightening supplies reinforce expectations that central banks will maintain elevated interest rates to combat rising costs. The prospect of prolonged high rates continues to weigh on silver and other non-yielding assets.

From a technical view, resistance stands near $75.50 while support is located around $72.80.