Wall Street Rises, Oil Above US$100 as Markets Monitor Hormuz Coalition
The S&P 500 rose on Tuesday (March 17), continuing the previous session's momentum as investors monitored developments in the Iran war, which continued to impact risk sentiment. The benchmark index rose 0.7%, the Nasdaq rose 0.6%, while the Dow Jones added 440 points, or 0.9%.
Market movements remain sensitive to oil volatility. On Tuesday morning, oil rose more than 1%, with Brent reestablishing its hold above US$100 per barrel, reinforcing concerns that energy supply disruptions could persist as long as the conflict remains on track for de-escalation.
The oil surge came after US President Donald Trump stated that plans for a coalition to protect shipping in the Strait of Hormuz were still underway. Trump acknowledged that some countries were "less enthusiastic" about escorting tankers, but he encouraged others to get involved immediately, saying some had already begun to act.
The surge in oil prices since the US-Israel attack on Iran has been driven by the risk of a prolonged closure of Hormuz, given that the route is crucial for global energy distribution. Any sign of a rapid recovery in tanker flows or the restoration of the flow of oil has the potential to shift risk premiums rapidly and trigger a shift in sentiment across assets.
The market is also monitoring the escalation on the ground after Israeli Defense Minister Israel Katz announced that Iran's security chief, Ali Larijani, was killed in an airstrike overnight. Geopolitical developments and the response to maritime security policies will be key variables for oil, inflation, and the durability of the US equity rally.
Source: Newsmaker.id
