Markets tumble as oil hits $100 amid Iran's vow on Strait
US stock indexes are losing ground in morning trading Friday as war tensions with Iran continue to destabilize global oil prices and economic confidence; Wall Street fell sharply Thursday when crude surged toward $100 per barrel following Iranian strikes on two tankers, prompting a sell-off across major indices including the Dow Jones which plunged over 745 points.
Key Points
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1US stocks lost ground as Iranian tensions escalated into open conflict with strikes on oil tankers.
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2Oil prices surged to $100 per barrel due to fears that Iran's new leader would block the Strait of Hormuz, exacerbating global inflation concerns and driving investors away from equity markets.
Developments
Perspectives
Stock markets are losing ground in morning trading as fallout from war with Iran keeps pressure on oil prices and destabilizes the global economy.
— [Mar 13, 02:56] US stocks lose ground as war with Iran keeps pressure on oil prices (Kaaltv)Wall Street fell because Iranian strikes sent crude prices surging toward $100 per barrel, exacerbating inflation fears and causing investors to flee equity markets.
— [Mar 12, 15:39] Wall St falls on Iran tensions, private credit concerns (Perthnow.com.au)US stocks plummeted as oil prices hit $100 after the new supreme leader vowed to keep the Strait of Hormuz blocked.
— [Mar 12, 15:14] Dow falls nearly 600 points, oil hits $100 as Iran's new leader to keep Strait of Hormuz closed (Nypost)Stocks fell and oil prices surged because the war with Iran continued to stoke fears regarding higher energy costs.
— [Mar 12, 14:59] Stocks fall as Iran's new supreme leader vows to close Straits of Hormuz closed (Krdo)Wall Street indexes lost ground in Friday morning trading as rising tensions with Iran disrupted global energy markets, causing Brent crude prices to exceed $100 per barrel and U.S. stocks toward their third consecutive week of losses due to fears that the closure of oil shipments through the Strait of Hormuz will drive inflation higher than expected by economists who doubt emergency reserve releases can stabilize supply chains or curb price surges above potential levels near 43% for this month
Iranian strikes on oil tankers and threats to close the Strait of Hormuz caused US stocks to fall sharply while crude prices surged toward $100 per barrel, exacerbating inflation fears ahead of a Federal Reserve meeting scheduled for March 17. Market strategists note that investors are adopting an aggressive sell-off mentality with no safe sectors outside energy as expectations grow slim on potential Fed interest rate cuts later this year due to the war's impact on oil supply and prices.
Iran's new supreme leader vowed to keep the Strait of Hormuz blocked following reports that he was injured by US-Israeli strikes on his family members in Tehran. Consequently, oil prices surged above $100 a barrel and major stock indices plummeted as Iran threatened attacks against any vessel attempting to pass through this critical maritime route for 20% of global oil supply.
Global stocks fell and crude oil surged 9.8% to $95.83 per barrel amid escalating tensions between Iran and the United States over control of the Strait of Hormuz, which is currently closed as a pressure tactic that supplies up to one-fifth of global consumption energy needs while US officials demand its reopening for trade continuity.