US Stock Market Trend | Mujahideen Threatens Retaliation, Dow Drops Over 700 Points

Iran’s new Supreme Leader, Muqtada, issued his first statement since taking office, emphasizing that the Strait of Hormuz should remain closed as a tool to pressure enemies. He also said all U.S. military bases in the Middle East should be immediately shut down or they will be attacked, stressing that revenge will not be abandoned. The escalation of Middle East conflicts has driven Brent crude oil prices above $100 per barrel, with New York crude also surging over 10%, heading straight for $100, undermining investor confidence. U.S. stocks plummeted on Thursday, with the Dow Jones Industrial Average dropping as much as 733 points to 46,683.

As of 11:42 p.m. Hong Kong time, the Dow was at 46,810, down 607 points or 1.28%; the S&P 500 was at 6,700, down 75 points or 1.11%; the Nasdaq was at 22,388, down 327 points or 1.44%.

Market concerns about ongoing conflict disrupting energy markets have driven oil prices higher, affecting various asset performances. Traders worry that rising fuel costs could reignite inflation and slow global economic growth.

Ecofi Investissements fund manager Karen Georges said the market is currently repricing for a scenario of sustained high oil prices, with shipping safety in the Middle East becoming one of investors’ biggest concerns. Releasing emergency oil reserves can only provide short-term relief.

Analysts note that if inflationary pressures rise again, it will become more difficult for the Federal Reserve to cut interest rates. Currently, the money market expects only one rate cut this year.

Oil prices are rising, with New York crude futures at $96.7 per barrel, up 10.8%; London Brent crude futures at $101.2, up 10.02%.