Oil price plunge on US-Iran peace hopes to give rupee, bonds some breather

In the United States and global markets, on 20 April 2026, oil prices moved sharply as the US-Iran standoff kept the Strait of Hormuz in limbo. Prices rose by 6% and by 7% in separate reports, one after Trump said an Iranian ship had been seized, while Reuters wrote that a plunge on US-Iran peace hopes could give India's rupee and bonds some breather.

US gasoline topped $4 per gallon, US Treasury yields and the dollar rose slightly, and US stocks gave back part of a record-breaking rally. Kuwait declared force majeure on oil shipments amid the Hormuz blockade. The moves came ahead of the expiry of the ceasefire.