--- title: "Markets To Stay On 'Knife-Edge' As Long As Hormuz Remains Closed, Warns Deutsche Bank" type: "News" locale: "en" url: "https://longbridge.com/en/news/285954510.md" description: "Analysts warn that global markets will remain on high alert due to the ongoing closure of the Strait of Hormuz amid the U.S.-Iran war. Deutsche Bank's Jim Reid states that as long as the strait remains closed, markets will be unstable, leading to higher oil prices and global inflation risks. Recent optimism for a peace deal has diminished, and crude prices spiked after President Trump rejected Iran's response to a peace proposal. Saudi Aramco's CEO echoed concerns about energy market rebalancing, while the UK prepares naval escorts for the region." datetime: "2026-05-11T13:35:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285954510.md) - [en](https://longbridge.com/en/news/285954510.md) - [zh-HK](https://longbridge.com/zh-HK/news/285954510.md) --- # Markets To Stay On 'Knife-Edge' As Long As Hormuz Remains Closed, Warns Deutsche Bank As the U.S.-Iran war enters its 11th week with no clear end in sight, analysts warn that global markets will remain on high alert due to the ongoing closure of the Strait of Hormuz. The lack of significant military action for over a month suggests a strong U.S. inclination towards a peaceful resolution, according to **Jim Reid** from **Deutsche Bank**. However, the continued Hormuz closure, a critical waterway for global oil shipments, keeps the markets in a state of high alert, reported Fortune. “In simple terms though, as long as the Strait of Hormuz stays closed, markets remain on a knife-edge," Reid said. Last week’s optimism about a potential Middle East peace deal ahead of President **Donald Trump**‘s visit to China has also been shattered, as per **Chris Turner** at **ING**. He further added that unless China exerts substantial behind-the-scenes pressure to secure a deal, the market will continue to factor in a stalemate, leading to “higher oil prices and a wave of global inflation.” **Read Also: Chinese Crude Imports Drop 20% In April, Potentially Easing Pressure On Surging Oil Prices** ## Trump Rejects Iran Peace Reply On Sunday, Trump rejected Iran’s response to a U.S.-backed peace proposal as ‘totally unacceptable,” causing crude prices to spike. At the same time, Israeli Prime Minister **Benjamin Netanyahu** said the conflict with Iran is “not over,” despite significant military gains amid unresolved issues like Iran’s enriched uranium stockpiles and nuclear infrastructure. On the other hand, Iran said that it would “never bow our heads before the enemy.” ## Oil Markets Warned On Hormuz Risk Echoing **Deutsche Bank**‘s stance, **Saudi Aramco**‘s CEO, **Amin Nasser**, warned that global energy markets will only rebalance in a few months if crude and LNG shipments through the Strait of Hormuz resume immediately. According to **Nasser**, the global oil market lost about 1 billion barrels over the past two months due to shipping disruptions through the strait.  The Strait’s closure has already led to the largest-ever monthly gain in oil prices in March, according to the IEA’s April report. At the time of writing, Brent crude oil was trading 1.93% higher at $103.24 per barrel. According to economist Peter Schiff, oil prices are unlikely to return to pre-Iran war levels soon amid continued tensions between Washington and Tehran Meanwhile, the UK is deploying HMS Dragon to the Middle East as part of a UK–France-led coalition preparing naval escorts through the Strait of Hormuz once conditions stabilize. The UK Ministry of Defence described the move as "prudent planning," with operations expected under a multinational framework. **_Disclaimer_:** _This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors_. **Read Also: Chris Wright Says Trump Admin 'Open To' Suspending Federal Gas Tax, Signals Possible 'Project Freedom' Return** _Image via Shutterstock_ ### Related Stocks - [DB.US](https://longbridge.com/en/quote/DB.US.md) - [DBK.DE](https://longbridge.com/en/quote/DBK.DE.md) - [ING.US](https://longbridge.com/en/quote/ING.US.md) - [03KB.DE](https://longbridge.com/en/quote/03KB.DE.md) - [DPB.DE](https://longbridge.com/en/quote/DPB.DE.md) ## Related News & Research - [LIVE MARKETS-Fed neutral stance points to over 4% - Deutsche Bank](https://longbridge.com/en/news/287195677.md) - [31 SHIPS CROSSED THROUGH HORMUZ WITH IRGC'S HELP, REPORTS IRAN TV.](https://longbridge.com/en/news/287242948.md) - [AMERICAN OFFICIAL TO FOX NEWS: IRAN'S STANCE ON THE NUCLEAR FILE REMAINS RIGID](https://longbridge.com/en/news/287224539.md) - [Al Jazeera: Iranian Official denies reports that Iran's Supreme Leader said that Uranium must stay in Iran.](https://longbridge.com/en/news/287236007.md) - [Gas prices per gallon holding steady in the United States](https://longbridge.com/en/news/286804495.md)