Wall Street Weakens, Oil Prices Rise as Hormuz Risks Grow
US stocks weakened on Wednesday (March 11th) as investors remained focused on the war in the Middle East and ignored inflation data that captures the period before the conflict began. The S&P 500 closed down 0.1%, extending its decline for a second day, while the Nasdaq 100 was relatively flat. In energy markets, Brent surged 5.9% to US$92.99 per barrel.
The market movements reflected concerns that energy risks were once again dominating the inflation and interest rate narrative, despite consumer price data that appeared more benign before the escalation. The S&P 500 also remained below its 50-day and 100-day moving averages, prompting market participants to pay attention to technical signals to gauge room for further correction.
On the geopolitical front, Iran reportedly conveyed to regional mediators that a ceasefire requires a commitment from the US and Israel not to resume attacks. President Donald Trump attempted to allay market concerns by downplaying the threat of mines in the Strait of Hormuz and reiterating that the war could end "soon," though without a clear timeframe. Reuters reported that Iran had placed about a dozen mines in the Strait, according to sources familiar with the matter.
This calming effort coincided with the International Energy Agency's (IEA) decision to approve the release of 400 million barrels of oil reserves, a record. However, the market considered the policy signals insufficient to eliminate the risk premium, while Trump asserted that the operation was not over and that the US would continue "more of the same" until its objectives were achieved. (yds)
Source: Newsmaker.id
