Brent crude oil experienced its largest monthly percentage decline since December 2025, despite a brief surge above USD 126 per barrel triggered by renewed concerns over the Strait of Hormuz and stalled US-Iran talks, according to UOB strategists. Brent crude for nearest month delivery settled at USD 114 per barrel on April 30, marking a 3.4% drop from its previous close, while West Texas Intermediate (WTI) crude hovered near USD 106 per barrel, up 12% for the week. The oil market's volatility was further influenced by US President Donald Trump's commitment to maintaining a naval blockade of Iranian ports, which contributed to oil's second consecutive weekly gain, supported by ongoing geopolitical tensions and US policy rhetoric [1].
In the equities market, Danske Bank's research team reported that most equity markets finished higher last week, led by technology and growth sectors, despite the negative sentiment from Iran-related risks and elevated oil prices. The week also saw a notable return of negative correlation between equities and bonds, with both yields and stocks rising. Strong earnings momentum was highlighted as a key factor offsetting geopolitical uncertainties, with equities up approximately 6-7% year-to-date, driven primarily by positive earnings growth rather than valuation expansion. Analysts noted that while downside risks from the Middle East persist, the robust earnings season provides potential upside for equities [2].
The interplay between oil price volatility and equity market performance underscores the complex market environment, where geopolitical risks and corporate earnings are both exerting significant influence. While oil prices reacted sharply to developments in the Middle East, equities demonstrated resilience, buoyed by strong earnings reports [1][2].
CONCLUSION
Brent crude's sharp monthly decline, despite geopolitical tensions, contrasts with the resilience in equity markets, which were supported by strong earnings. The market remains sensitive to Middle East developments, but positive earnings momentum continues to provide upside potential for equities.