[New York Stock Exchange] Nasdaq Drops 1.15% After Mojtaba Mentions Strait Blockade

Mojtaba Issues First Statement Since Taking Office
Blockade and Determination to Resist Emphasized
Investor Sentiment Weakens on Expectations of Prolonged Conflict
All Three Major Indexes Open Lower
Large-Cap Stocks Decline Across the Board

New York Stock Exchange, USA. Photo by Yoonju Hwang

After Seyyed Mojtaba Khamenei, Iran's Supreme Leader, made his first public statement since taking office and mentioned a possible blockade of the Strait of Hormuz, all three major U.S. stock indexes opened lower and continued to deepen their losses on March 12 (local time).

As of 10:03 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was down 451.71 points, or 0.95%, at 46,965.56 compared to the previous trading day. The S&P 500 index, which focuses on large-cap stocks, dropped 52.82 points, or 0.88%, to 6,715.98. The tech-heavy Nasdaq index was trading at 22,455.72, down 260.40 points, or 1.15%.

Supreme Leader Mojtaba stated in a statement, "We vow vengeance for the blood of the martyrs, will blockade the Strait of Hormuz, and attack U.S. military bases." This marks his first public statement since taking office as the new Supreme Leader on the 9th.

As a result, West Texas Intermediate (WTI) crude futures surged 8.78% to $94.84 per barrel. Brent crude also jumped 8.25% to reach $99.57.

Chris Wright, U.S. Secretary of Energy, said in an interview with CNBC that the U.S. Navy is currently not prepared to escort oil tankers passing through the Strait of Hormuz, but expects to be able to provide escorts by the end of the month. This contradicts what President Donald Trump said in a previous media interview, where he stated that the Iran war "will end soon."

With the expectation that energy transportation through the Strait of Hormuz will be difficult for some time and that the Iran war could last for at least two more weeks, investor sentiment in the market appears to have significantly weakened.

Adam Crisafulli of Vital Knowledge commented, "Iran's strategy to sow economic chaos in the Gulf region is proving effective," adding, "While the U.S. and Israel maintain military superiority and Iran's missile and nuclear programs may have been weakened, Tehran's hardline regime remains firmly in place, and their current plan seems to be using oil to further corner President Trump."

Oil and defense stocks are all trading higher. ExxonMobil is up 0.87%, Chevron up 1.37%, Lockheed Martin up 1.61%, AeroVironment up 3.84%, and Northrop Grumman up 1.30%. In contrast, airline stocks are weak, with Delta down 1.50%, American Airlines down 2.40%, and United Airlines down 2.97%.

Bank and technology stocks are also showing notable weakness. Morgan Stanley, which set a withdrawal limit for private equity funds, is plunging 4.28% from the previous day. Blackstone is down 2.23%, Goldman Sachs down 4.03%, and JPMorgan Chase down 2.27%.

Additionally, technology stocks such as Nvidia (-1.55%), Apple (-1.67%), Amazon (-1.00%), Alphabet (-1.29%), and Meta (-1.41%) are also declining. Semiconductor stocks like TSMC (-3.82%) and Broadcom (-2.03%) are also falling.

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