Late night, across-the-board decline! Hormuz Strait, major news

Originally from: Ningbo Evening News

On the evening of the 12th Beijing time, Iran’s Supreme Leader Ayatollah Ali Khamenei issued his first statement. Khamenei stated that revenge will not be abandoned and the Strait of Hormuz will remain closed. He also said all U.S. military bases in the Middle East should be immediately shut down.

Following Khamenei’s announcement, European stock markets declined further. As of press time, the Euro Stoxx 50 index fell over 1%, France’s CAC 40 dropped 0.70%, Germany’s DAX 30 declined 0.52%, and the UK FTSE 100 fell 0.56%.

The three major U.S. stock indexes also plunged collectively. As of press time, the Russell 2000 index dropped 2%, and the Dow Jones, S&P 500, and Nasdaq all fell more than 1%. The Nasdaq declined 1.63%. Large tech stocks fell sharply, with Tesla down over 3%, Nvidia, Apple, and Google down over 2%, Facebook and Amazon down over 1%. The Philadelphia Semiconductor Index fell over 3%, with Micron Technology, Applied Materials, and Intel dropping over 4%.

Concerns over supply disruptions pushed oil prices higher, with Brent crude surpassing $100 per barrel. As of press time, WTI crude rose nearly 10%, trading at $95.71 per barrel; Brent crude increased 9.21% to $100.45 per barrel.

Iran’s Supreme Leader: The Strait of Hormuz will remain closed

According to CCTV News, on the 12th local time, Iran’s Supreme Leader Ayatollah Ali Khamenei said that revenge will not be abandoned, and the Strait of Hormuz will remain closed.

Khamenei said, “We believe in friendly relations with neighboring countries, but we must continue to strike enemy bases.”

On the same day, Iran’s newly appointed Supreme Leader, Ayatollah Ali Khamenei, delivered his first statement on national television, mainly focusing on national unity, external conflicts, regional relations, and mourning the late leader Ali Khamenei.

In his statement, he called for social unity, ongoing participation in national affairs, and emphasized strengthening social mutual aid during difficult times. He also encouraged the public to actively participate in the upcoming “Quds Day” activities.

Regarding the current situation, Khamenei expressed gratitude to the Iranian military and resistance forces, stating that they prevented enemies from controlling or dividing Iran. He also said Iran will continue to adopt strategic measures, including closing the Strait of Hormuz, and will open new fronts if necessary.

On regional issues, he called on neighboring countries to shut down military bases used by the U.S. and clarified that Iran’s strikes target only military facilities, not the countries themselves. He also emphasized that Iran still hopes to maintain friendly relations with its neighbors.

The statement condemned enemy attacks on Iranian schools, stating that revenge is not only for the assassination of the Supreme Leader but also for every Iranian killed.

It also said Iran will seek compensation from enemies at all costs. If enemies refuse compensation, Iran will seize their assets. If seizure is impossible, Iran will destroy assets of equal value.

This is Khamenei’s first public statement since becoming Supreme Leader, covering seven parts: the martyrdom of revolutionary leaders, the role and responsibility of the people, armed forces, administrative agencies, resistance front, regional countries, and how to respond to enemies.

On the evening of the 8th local time, Iran’s Expert Council issued a statement announcing the appointment of the late Supreme Leader Ali Khamenei’s son, Ayatollah Ali Khamenei, as the new Supreme Leader of the Islamic Republic of Iran.

U.S. Energy Secretary: “Not Ready” for Escort

According to Xinhua News Agency, U.S. Energy Secretary Chris Wirth said in an interview with CNBC on the 12th that the U.S. is currently “not ready” to escort oil tankers through the Strait of Hormuz.

Wirth said, “The escort will be implemented soon, but not now,” and “We are not ready yet. All our military assets are currently focused on destroying Iran’s offensive capabilities and related manufacturing industries.”

Previously, President Trump stated that if necessary, the U.S. military would escort oil tankers passing through the Strait of Hormuz. However, several informed sources revealed on the 10th that since the U.S. military strikes on Iran, ships and oil tankers near the Strait have requested escort almost daily, but were refused due to high risks.

According to foreign media reports, the Iranian military warned the U.S. on the 11th that “prepare for $200 per barrel oil prices because oil prices depend on regional security, and you are the ones destroying that security.”

In response, U.S. Energy Secretary Chris Wirth said on the 12th that although oil tankers remain stranded in the Strait of Hormuz due to the ongoing conflict between the U.S., Israel, and Iran, it is unlikely that global oil prices will rise to $200 per barrel. He also stated that the government has not discussed a ban on refined oil exports.

Wirth said, “I won’t speculate on short-term trading because it is more driven by psychological factors than actual oil flows.” When asked whether the U.S. would implement a refined oil export ban, Wirth said the Trump administration has not discussed it.

Oil Price Surge Sparks Inflation Concerns

On the evening of March 12 Beijing time, international oil prices surged sharply, with Brent crude once again surpassing $100 per barrel. As of press time, WTI crude rose nearly 10%, and Brent crude increased over 9%.

Rodrigo Catril, senior FX strategist at National Australia Bank, said, “The market remains very concerned about what might happen in the Strait of Hormuz. The information we’ve received over the past 24 hours is not optimistic. This reinforces our view that oil prices are likely to rise from here rather than fall.”

Iran has intensified attacks on ships in the Strait of Hormuz. Since the outbreak of tensions, at least 16 ships have been attacked in the region.

Globally, bond yields have risen as inflation risks outweigh safe-haven concerns. The 10-year U.S. Treasury yield rose to 4.2257%, up 2 basis points from the previous trading day.

Investors are worried that rising inflation could make it difficult for the Federal Reserve to ease monetary policy. Markets are betting on only one rate cut by the Fed this year. Due to ongoing energy-driven inflation threats, markets expect the European Central Bank to raise interest rates in June.

Ipek Ozkardeskaya, analyst at Swissquote Bank, said in a research report that unless geopolitical tensions are substantially eased, oil prices are unlikely to return to levels that can curb inflation expectations. She added that the International Energy Agency’s plan to release 400 million barrels of oil is only enough for about 9 to 10 days, and the IEA holds about 1.2 billion barrels of oil. This is the second energy crisis in five years, highlighting the urgent need for economies to reduce dependence on imported energy. She also pointed out that market risks remain skewed to the downside, mentioning AI anxieties, severe disruptions in oil and fertilizer trade, major threats to global inflation, and private credit pressures.