The American blockade of the Strait of Hormuz over the weekend weighed on both the local bourse and foreign exchange market on Monday, 13 April, as investors’ hopes for peace talks were once again dashed.

The benchmark Philippine Stock Exchange Index (PSEi) closed Monday at 6,054.05, down 0.72 percent, as risk sentiment weakened following renewed tensions in the Middle East. The pullback came after US–Iran peace talks collapsed over the weekend, prompting US President Donald Trump to order a naval blockade of the Strait of Hormuz, heightening fears of a prolonged conflict.

Net value turnover reached P6.57 billion, while foreign investors posted net outflows of P216.89 million, indicating renewed investor caution at the start of the trading week.

Sector performance was broadly negative, with only services (+1.02 percent) in positive territory, while banks (-2.35 percent) led the decliners. Market breadth was weak, with decliners outnumbering advancers, 121 to 82. Among index names, only four blue chips posted gains, led by Aboitiz Equity Ventures (+4.03 percent), while JG Summit (-5.23 percent) was the biggest laggard.

On the currency front, the peso weakened to P60.135 per US dollar from P59.97 last Friday, reversing part of last week’s gains. Oil prices climbed back above $100 per barrel, with Brent and WTI rising sharply after the collapse of peace talks and the announcement of a US blockade targeting Iranian oil flows. The move threatens to remove millions of barrels from global supply and disrupt a chokepoint that handles roughly 20 percent of global oil trade.

Shipping activity in the Strait has already been affected, with tankers avoiding the route amid rising military risks. The blockade is expected to tighten supply further, exacerbating inflation concerns and boosting demand for the US dollar as a safe-haven asset.

For the Philippines—highly dependent on imported fuel—this translates into renewed pressure on both the peso and equities. Rising oil prices increase the country’s import bill and inflation risks, limiting upside for both the currency and the stock market.