All markets surged overnight! Over 100,000 liquidations! Major news breaks out in the Strait of Hormuz

Tensions in the Middle East continue to shake global markets.

Last night, the U.S. stock market opened sharply lower but then rallied across the board. The Nasdaq and S&P 500 index stubbornly closed higher, with most large tech stocks gaining. Additionally, the cryptocurrency market surged across the board. As of press time, Bitcoin jumped over 6%, surpassing $69,000; Ethereum and SOL also rose over 6%. According to CoinGlass data, in the past 24 hours, a total of 107,819 traders were liquidated worldwide, with total losses of $370 million.

Regarding the Middle East situation, according to CCTV News, late on March 2 local time, an advisor to the commander of the Iranian Islamic Revolutionary Guard Corps stated that the Strait of Hormuz has been closed, and Iran will target all ships attempting to pass through the Strait.

Furthermore, U.S. President Trump’s latest remarks have attracted widespread attention. According to CCTV News, Trump said he does not rule out deploying ground troops to Iran if necessary, and that the “big wave” of strikes against Iran has not yet arrived. He indicated that operations against Iran could last four to five weeks, and that preparations are in place for a duration far exceeding that.

U.S. Stocks Rally Collectively

On March 2 Eastern Time, impacted by escalating tensions in the Middle East, the three major U.S. stock indices opened sharply lower. Throughout the day, there were multiple buy-the-dip attempts, and the indices rallied collectively, turning positive at times. By the close, the Dow fell slightly by 0.15%, the Nasdaq rose 0.36%, and the S&P 500 increased by 0.04%.

Most large tech stocks gained, with Nvidia up about 3%, Microsoft up over 1%, and Apple, Tesla, Netflix, and Meta modestly higher. Google fell over 1%, while Intel and Amazon saw slight declines.

U.S. investors bought the dip during the session, indicating a market expectation that the disruptions from the conflict might be limited. Bill Smead, founder and chairman of Smead Capital Management, said, “Market participants believe this is only temporary, and issues in the oil sector will eventually subside.”

Morgan Stanley strategist Michael Wilson and his team noted that past military conflicts in the Middle East have not caused long-term declines in the markets. For this war to significantly and sustainably impact the U.S. stock market, oil prices would likely need to surge above $100 per barrel.

The firm also pointed out that historically, following “geopolitical risk events,” the S&P 500 has averaged gains of 2%, 6%, and 8% after 1, 6, and 12 months, respectively.

In precious metals, spot silver prices plunged sharply, dropping over 7 intraday before closing down 4.8%. COMEX silver futures fell 3.83%. Spot gold also experienced a sharp decline, turning from gains to losses, but ultimately closed up 0.81%.

Analysts suggest that the main reason for the sharp drop in gold and silver prices may be the significant strengthening of the U.S. dollar index, which surged over 1% during the day. On Monday, former U.S. Treasury Secretary and Federal Reserve Chair Janet Yellen stated that recent developments in Iran have made the Fed more inclined to hold steady, and their attitude toward rate cuts has become more cautious compared to before the events.

Latest Remarks from Trump

According to CCTV News, on March 2 local time, U.S. Secretary of Defense Lloyd Austin held a press conference regarding the “Epic Rage” operation against Iran. He confirmed that U.S. troops have not yet deployed ground forces inside Iran but did not rule out any options. He dismissed claims of an “endless” war with Iran.

U.S. President Trump told the media that he does not rule out deploying ground troops to Iran if necessary, and that the “big wave” of strikes against Iran has not yet arrived.

Trump said that military operations against Iran could last four to five weeks, but he is prepared for actions that could extend well beyond that. The U.S. aims to completely destroy Iran’s navy and has already sunk 10 of its vessels.

Trump stated that a nuclear-armed Iran is unacceptable to the U.S. The U.S. continues to carry out large-scale military actions in Iran, with clear objectives including destroying Iran’s missile capabilities and preventing Iran from acquiring nuclear weapons.

On the same Monday, U.S. Secretary of State Antony Blinken said that the U.S. has succeeded in eliminating threats from Iran’s navy and short-range missiles. The goal is to destroy Iran’s missile and naval capabilities and to see a new regime in Iran.

Meanwhile, Iran continues missile and drone attacks against Israel and Gulf countries. Iran’s state television claimed that Iran did not attack Saudi Aramco.

According to CCTV International, U.S. Central Command confirmed that by 4 p.m. Eastern Time on March 2 (3 a.m. Beijing time on March 3), six U.S. soldiers had been killed in military operations against Iran. It was reported that remains of two previously missing U.S. soldiers were recovered from a facility hit during Iran’s initial attack in the region.

“Strait of Hormuz Has Been Closed”

On March 3 early morning, CCTV News reported that late on March 2 local time, an advisor to the commander of the Iranian Islamic Revolutionary Guard Corps stated that the Strait of Hormuz has been closed, and Iran will target all ships attempting to pass through.

The Iranian Revolutionary Guard has not yet issued an official statement.

On the same day, Jeremy Nixon, CEO of Ocean Network Express, said that after the U.S.-Israel attack on Iran, about 750 ships are currently stranded around the Strait of Hormuz, including approximately 100 container ships. About 10% of the global container fleet is stuck there.

The International Transport Workers’ Federation and the Joint Negotiating Group issued a statement on their website saying that the Strait of Hormuz and its surrounding waters have been designated as a “high-risk area” following the escalation of military conflict. This designation requires shipowners and operators to ensure increased protection for crew members, including risk assessments before transiting, contractual insurance, and crew members’ right to refuse passage through the area. The ITF represents 16.5 million transport workers worldwide, while the Joint Negotiating Group includes maritime industry employers.

Currently, with Iran retaliating against U.S.-Israeli strikes, maritime insurers have suspended voyages through the Strait of Hormuz between Iran and Oman. This strait accounts for about one-fifth of global oil consumption and transports large quantities of natural gas.

Disruptions in energy transportation through the Strait of Hormuz are affecting the pricing of some major crude oil grades globally. On March 2, S&P Global Energy announced to subscribers that it has ceased accepting bids for oil grades passing through this strategic waterway in its trading window used to help set Dubai benchmark prices. The affected grades include Dubai, Upper Zakum, Al-Shaheen, and some Murban cargoes.

(Source: Securities Times)