Strait of Hormuz: Major Breaking News! US Stocks Launch Massive Counterattack, Oil Prices Plunge

Source: Securities Times Network Author: Zhou Le

The US-Iran situation has thoroughly shaken global financial markets.

Following signs of easing in the Middle East situation, the three major US stock indices all closed higher overnight, with gains exceeding 1%. European stock markets also rose collectively, while international oil prices plummeted sharply—WTI and Brent crude oil futures once dropped over 14% during the day. Analysts pointed out that a series of remarks by US President Trump eased market fears of further escalation, with the VIX fear index falling more than 2%.

Currently, the latest developments in the Strait of Hormuz are also drawing market attention. Early this morning, according to CCTV News, a spokesperson from Iran’s Hatam-ol-Anbia Central Command stated that Iran has taken the initiative in relevant waters of the Persian Gulf and Oman Gulf and has effective control over the Strait of Hormuz. Iran does not need to lay mines in the Persian Gulf but will take all necessary measures to ensure security when needed.

Full Counterattack

On March 24, Eastern US time, the three major US stock indices all closed higher, though the gains narrowed significantly from earlier in the session. The S&P 500 rose 1.15%, the Nasdaq increased 1.38%, and the Dow Jones gained 1.38%.

Large-cap tech stocks in the US rose across the board, with Broadcom surging over 4%, Amazon up more than 2%, Nvidia, Apple, and Meta rising over 1%, while Google and Microsoft saw modest gains.

Popular Chinese concept stocks also rose across the board, with the Nasdaq Golden Dragon China Index up 0.86%, ending a four-day losing streak. Among them, Xpeng Motors and NIO both surged over 7%, Futu Holdings jumped over 3%, Alibaba rose nearly 3%, Li Auto increased over 2%, and Pinduoduo, JD.com, Baidu, Ctrip, and Bilibili all saw small gains.

European stock markets also rebounded across the board. By the close, the STOXX 50, Germany’s DAX 30, and Spain’s IBEX 35 all rose over 1%, while France’s CAC 40 and Italy’s FTSE MIB increased by 0.79% and 0.81%, respectively.

International oil prices also plunged sharply. WTI May crude futures closed at $88.13 per barrel, down 10.28%, and Brent May crude futures closed at $99.94 per barrel, down 10.92%.

On the news front, CCTV News reported that US President Trump announced productive talks with Iran’s leadership, leading to a five-day delay of the attack.

Subsequently, Trump stated that the US is in negotiations with Iran to see if a broader agreement can be reached. Trump said, “This time, Iran is serious; they want to make peace. The US has cleared all targets within Iran, including its leadership.”

Trump also said Iran has one last chance to end its threats against the US. The world will soon become safer.

Israeli Prime Minister Netanyahu said in a video speech on the evening of the 23rd that Trump indicated that a “war goal” against Iran could be achieved through “an agreement.” However, Netanyahu also stated that Israel will “continue airstrikes against Iran and Lebanon.”

In response, Iran’s Parliament Speaker Ali Larijani posted on social media on the 23rd, denying that Iran has held negotiations with the US, calling such claims “fake news” used to manipulate financial and oil markets.

Chris Larkin, head of trading at Morgan Stanley’s E*TRADE, said, “The market has been awakened by some potential good news, but for a rebound to be sustained, there may need to be real progress on the geopolitical front. We still live in a market dominated by headlines.”

Goldman Sachs trader Rich Privorotsky pointed out that Trump’s actions over the past 72 hours follow a fixed pattern: on Friday, signals of “considering tightening” are released; on Saturday, the stance hardens; and on Monday, a “pause for five days” is announced. Tension is created first, then deadlines are set, and finally, “step-down” measures are offered to generate internal propaganda results.

Bloomberg macro strategist Michael Ball warned that the rebound of the S&P 500 on Monday did not change the core issue: high oil prices boost inflation expectations, which could lead the Federal Reserve to remain on hold and tighten financial conditions.

Iran Military: Effective Control of the Strait of Hormuz

Regarding the situation, CCTV News reported that a spokesperson from Iran’s Hatam-ol-Anbia Central Command said Iran has taken the initiative in relevant waters of the Persian Gulf and Oman Gulf and has effective control over the Strait of Hormuz. The spokesperson stated that based on current control capabilities, Iran does not need to lay mines in the Persian Gulf but will take all necessary measures to ensure security when needed. He also said Iran’s armed forces have the ability to maintain the security of the Persian Gulf in cooperation with regional countries, and foreign countries have no right to intervene.

During the US stock market’s late trading hours, reports indicated that thousands of US Marines are expected to arrive in the Middle East on Friday. Among them, the amphibious assault ships USS LHD-1 “America” and USS New Orleans, previously deployed in the Asia-Pacific region, along with about 2,200 US Marines from the 31st Marine Expeditionary Unit, will enter the US Central Command area of responsibility on Friday. It was also reported that the unit might need several more days to reach the Strait of Hormuz.

Trump told the media he hopes the Strait of Hormuz can reopen soon. When asked who will control the strait, Trump replied, “Maybe me,” adding that Iran’s new leadership will also play a role in managing this critical global waterway.

Brock Weimer of Edward Jones pointed out that the most convincing risk-averse signal would be the actual flow of oil through the Strait of Hormuz returning to normal, rather than verbal statements.

Bob Doll, Chief Investment Officer at Crossmark Global Investments, said, “Nothing is more important in the short term than oil prices—when oil prices fall, stocks rise, and vice versa.”

According to CCTV News, an Iranian military source said Iran has prepared new “surprises” for the coming days, which could have “significant effects.”

The source indicated that Trump’s “all military options have failed,” and he is seeking a way out, thus dragging the conflict from the battlefield into social networks.

The source also said Trump is aware that his military options are in “very poor shape,” unable to achieve victory or reopen the Strait of Hormuz, and therefore has to resort to rhetoric, which will only make him “more embarrassed.”

He emphasized that, contrary to Trump’s hollow promises, Iran has prepared “surprise actions” for the coming days that will clarify the outcome of the conflict.