U.S. Blockage of Hormuz Sends Oil Higher, Goldman Delivers Strong Earnings

The U.S. Navy began a blockade of the Strait of Hormuz over the weekend, sending oil prices back above $100 a barrel and reversing some of the optimism from the previous week’s Iran-U.S. ceasefire talks. Meanwhile, Goldman Sachs reported its highest profit in five years, but its stock fell because its fixed-income trading business missed expectations. The episode also covers a major breakthrough in pancreatic cancer treatment, a downgrade of Best Buy, and the growing trend of companies—including McDonald’s—entering the energy drink market.

The Strait of Hormuz Blockade and Oil’s Rebound

After the S&P 500 posted its best week of the year—up 3%, with the Nasdaq gaining over 4%—and oil prices saw their biggest weekly drop since 2020 (falling over 12% to $95 a barrel), the mood shifted over the weekend. The U.S. and Iran met in Islamabad, Pakistan, but failed to reach a deal. President Trump then announced that the U.S. Navy would conduct a full blockade of the Strait of Hormuz to prevent Iranian ships from passing through. The U.S. Central Command clarified that the blockade is not total: ships traveling to and from non-Iranian ports will not be impeded. The specific target is vessels leaving Iranian ports, aiming to choke off Iran’s economy, which relies heavily on oil exports. Iran had been exporting nearly 2 million barrels of oil a day, mostly to China, and the blockade