Hormuz Blockade Is a US-Iran 'Game of Chicken': Roubini
Speakers
Nouriel Roubini
— Chairman, Roubini Macro Associates
Summary
Nouriel Roubini discusses the US naval blockade in the Strait of Hormuz, arguing it is a game of chicken that Iran can outlast. He warns that this will lead to higher oil prices, falling stock markets, higher bond yields, and global economic slowdown without achieving US objectives.
- Roubini analyzes the US-Iran standoff over the Strait of Hormuz.
- He describes the blockade as a 'game of chicken' that Iran can win.
- The blockade will strangle Iran's revenues but not lead to surrender.
- Consequences include sustained higher oil prices.
- Stock markets will fall due to reduced confidence and growth.
- Bond yields will rise from inflation and uncertainty.
- Global growth will slow, and inflation will remain higher for longer.
- Roubini criticizes the half-baked escalation as ineffective.
Trade Ideas
Higher oil prices due to Hormuz blockade.
The US naval blockade in the Strait of Hormuz is a game of chicken that Iran can outlast, leading to sustained higher oil prices because Iran controls the strait and can withstand economic pressure, disrupting supply.
Stock markets will fall from blockade effects.
The blockade and resulting higher oil prices will lead to falling stock markets due to reduced consumer and business confidence, growth slowdown, and higher inflation.
Bond yields to rise from inflation.
Higher inflation and economic uncertainty from the blockade will lead to higher bond yields, implying falling bond prices.
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This Bloomberg Markets video, published April 13, 2026, features Nouriel Roubini discussing WTI, SPY, TLT. 3 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Nouriel Roubini · Tickers: WTI, SPY, TLT