[New York Stock Market] Major Indices Close Flat Amid War Uncertainty Despite Oil Reserve Release

Rising Oil Prices Amid Uncertainty Over Iran Conflict
Market Remains Directionless, Adopting a Wait-and-See Approach

New York Stock Exchange, USA. Photo by Yoonjoo Hwang

Despite the International Energy Agency (IEA) deciding on the largest-ever strategic oil reserve release, concerns over a prolonged Iran war led the three major US stock indices to close flat on March 11 (local time).

At 9:58 a.m. on this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 47,417.24, down 289.24 points (0.61%) from the previous trading day. The S&P 500 index, centered on large-cap stocks, ended at 6,775.80, down 5.68 points (0.08%), while the technology-focused Nasdaq index finished at 22,716.135, up 19.031 points (0.08%).

The International Energy Agency recommended releasing 400 million barrels of crude oil, the largest amount in IEA history, in response to instability in international oil prices caused by the Middle East conflict. This release marks a record high and is expected to take place over at least two months.

However, on the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) crude for April delivery closed at $87.25 per barrel, up $3.80 (4.55%) from the previous session. As Iran reiterated its intention to blockade the Strait of Hormuz, oil prices, which had been falling, rebounded.

Ron Albahari, Chief Investment Officer at Laird Norton Wetherby, commented on the IEA's decision, stating, "It does not resolve other issues affecting the global economy," and added, "The market seems to be deliberating what kind of exit strategy may exist at this point." He continued, "Since both sides are maintaining hardline stances, it is unlikely that a positive outcome will emerge in the short term."

US President Donald Trump, referring to the Iranian airstrike, indicated that there would be no prolonged conflict, saying, "This is a 'short excursion' that will get us out of the war, but for them, it will be a war." He added, "The market is holding up well and will return to normal in a fairly short time."

Although President Trump earlier this week said the Iran war "would end soon," the market has struggled to find direction due to Iran's strong determination to resist.

Emmanuel Cau, Head of European Equity Strategy at Barclays, wrote in a report, "President Trump's suggestion that the war could soon end after the oil price surge indicates he may have reached his 'pain threshold,'" and analyzed, "The longer the surge in oil prices lasts, the greater the downside risks to corporate earnings and corporate value."

Energy stocks such as ExxonMobil (up 2.16%), Chevron (up 2.88%), Occidental Petroleum (up 4.47%), and APA (up 3.61%) ended higher. Oracle, which reported strong earnings results, also soared about 9% at the close. On the other hand, Delta Air Lines (down 0.46%), American Airlines (down 0.64%), and United Airlines (down 0.66%) finished lower.

The Consumer Price Index (CPI) for February, released the same day, rose 2.4% year-on-year, in line with market expectations. However, since the surge in international oil prices following the Iran war was not reflected, the prevailing view in the market is that a rise in the March CPI is inevitable.

Ellen Zentner, an official at Morgan Stanley Investment Management, commented, "Despite the decision to release oil reserves, ongoing uncertainty is increasing the risk of rising oil prices, which means the Federal Reserve is likely to remain cautious about lowering interest rates."

Technology stocks were generally on an upward trend. Nvidia (up 0.49%), Alphabet (up 0.54%), and Meta (up 0.02%) closed higher, while Apple (down 0.07%) and Microsoft (down 0.32%) ended lower.

Meanwhile, the US Energy Information Administration (EIA) announced that as of March 6, US commercial crude oil inventories increased by 3.82 million barrels from the previous week. This far exceeded the market forecast of 1.1 million barrels.

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