Oil markets surged Friday as the Strait of Hormuz remained effectively shut after the U.S. and Israel entered war with Iran in late February. Brent crude leapt over 2% to just under $108 a barrel, while West Texas Intermediate rose nearly 3% to $103. The rally followed a Beijing summit where President Trump failed to extract a Chinese pledge to pressure Tehran for global traders.

Investors fear the waterway could stay closed beyond June, prompting a broader energy shock. Deutsche Bank analysts wrote that Trump’s claim the U.S. does not need the strait heightens uncertainty, likely extending supply constraints. Gasoline prices held at $4.53 per gallon, up 52% since the conflict began, while diesel slipped a penny to $5.66, still 50% higher.

Equity markets reacted sharply, with the S&P 500 futures down 0.8% and Asian indices tumbling—South Korea’s Kospi plunged over 6%, while Japan’s Nikkei and Hong Kong’s Hang Seng each slipped about 2%. European gauges followed, dragging the Stoxx 600, Germany’s DAX and Britain’s FTSE 100 below the 1% mark. The episode underscores how geopolitical risk now drives both commodity and stock volatility.