[New York Stock Exchange] All Three Major Indices Fall Following Reports of Iranian Oil Tanker Attack

Explosion on Oil Tanker in Iraqi Waters
Iran Claims Responsibility for Attack
International Oil Prices Surge, Investor Sentiment Weakens

AFP Yonhap News

Following news that Iran attacked an oil tanker, international oil prices rose, leading all three major U.S. stock indexes to open lower again on March 5 (local time).

As of 9:37 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average stood at 48,461.94, down 277.47 points (0.57%) from the previous trading day. The S&P 500 index, which focuses on large-cap stocks, dropped 11.67 points (0.17%) to 6,857.84, while the tech-heavy Nasdaq index fell 21.29 points (0.09%) to 22,791.72.

According to foreign media reports, a large explosion occurred on an oil tanker anchored in Iraqi territorial waters. All crew members were unharmed, and no fire broke out. In relation to this, Iran is claiming responsibility for the attack on the oil tanker.

Savita Subramanian, Head of U.S. Equity Strategy at Bank of America (BofA) Securities, commented, "The backdrop is changing. There was clearly a geopolitical shock, and we are still analyzing what impact this will have on the equity risk premium."

West Texas Intermediate (WTI) crude rose 3.8% to $77.52 per barrel. During the session, WTI surpassed $78, hitting the highest level since the Iranian airstrike in June last year. Brent crude also jumped 2.9% to $83.75 per barrel.

On March 3, President Donald Trump announced plans to provide military protection for oil tankers passing through the Strait of Hormuz. However, White House spokesperson Caroline Rabbit said during a briefing that there are no specific plans regarding this matter.

With the Strait of Hormuz effectively closed, oil-producing countries in the Middle East have also drastically reduced output. The Wall Street Journal (WSJ) reported that, in the short term, the market's direction will depend on whether oil tanker traffic through the Strait of Hormuz can resume.

Oil refining stocks showed gains. ExxonMobil rose by 0.65% and Chevron by 1.03%. In contrast, airline stocks are plummeting: Delta fell 3.26%, American Airlines 3.21%, and United Airlines 3.25%.

Technology stocks, which had been driving the market, are weak. Nvidia declined by 0.66%, Apple by 0.83%, Alphabet A by 1.05%, Meta by 0.11%, Tesla by 0.87%, and TSMC by 0.14%.

This content was produced with the assistance of AI translation services.