European, American, Japanese, and South Korean stock markets are down.

On March 4 Beijing time, the stock markets of Japan and South Korea opened sharply lower. The Nikkei 225 index opened down 1.44%, and South Korea’s Kospi index opened down 3.44%. Subsequently, both markets continued to weaken, and as of the time of this report, South Korea’s Kospi had fallen nearly 6% at one point.

On March 3 local time, stock markets across Europe and the United States declined across the board. By the close, the Dow Jones Industrial Average fell 0.83% to 48,501.27 points; the Nasdaq Composite fell 1.02% to 22,516.69 points; and the S&P 500 index fell 0.94% to 6,816.63 points. The UK’s FTSE 100 index in the euro area declined 2.75%, France’s CAC 40 fell 3.46%, Germany’s DAX dropped 3.44%, the Netherlands’ AEX decreased 2.55%, and Italy’s FTSE MIB fell 3.92%.

Regarding the international situation, tensions in the Middle East continue to escalate. According to Iran’s Fars News Agency, Xinhua reported on March 3 that Mohammad Akbarzadeh, deputy commander of the navy of Iran’s Islamic Revolutionary Guard Corps, stated that the Strait of Hormuz is fully under the control of the Iranian navy, and more than ten oil tankers in the strait were hit by artillery shells.

Additionally, according to a report by Xinhua News Agency, U.S. President Trump on March 3 said that Spain does not support the United States in striking Iran, and he plans to cut off all trade relations with Spain.

In response, the Spanish government on March 3 stated that the country has the necessary resources to handle potential impacts, and will support affected industries and promote diversification of supply chains.

U.S. and European stock markets decline across the board

On Tuesday local time, all three major U.S. stock indexes declined. The Dow Jones Industrial Average at one point dropped over 1,200 points during the day. By the close, the Dow fell 403.51 points, or 0.83%, to 48,501.27; the Nasdaq declined 232.17 points, or 1.02%, to 22,516.69; and the S&P 500 decreased 64.99 points, or 0.94%, to 6,816.63.

Most large-cap technology stocks fell. Micron Technology dropped nearly 8%, Intel declined over 5%, Tesla fell more than 2%, Nvidia declined over 1%, while Google and Apple saw slight declines; Microsoft rose over 1%, and Amazon and Netflix increased slightly.

Most popular Chinese concept stocks declined. The Nasdaq China Golden Dragon Index fell 3.34%. Alibaba dropped 4.89%, Pinduoduo fell 2.05%, Amer Sports declined 2.56%, JD.com decreased 2.69%, Baidu fell 3.93%, ASE Technology Holding dropped 7.81%, Trip.com rose 0.43%, Futu Holdings declined 3.29%, and Tencent Holdings (ADR) fell 1.72%.

The “VIX”—the so-called “fear index” measuring market panic—surged to 28.15 points at one point, the highest level since November 2025.

John Williams, President of the Federal Reserve Bank of New York, recently stated that the economic impact of the U.S.-led military strike against Iran would depend on asset prices, especially the duration of disruptions to oil prices. It is still too early to make a broad assessment of how this will affect the global economy.

Eurozone stock markets “crashed” across the board. By the close, the FTSE 100 index in the UK declined 2.75%, France’s CAC 40 fell 3.46%, Germany’s DAX dropped 3.44%, the Netherlands’ AEX decreased 2.55%, and Italy’s FTSE MIB fell 3.92%.

European Central Bank Chief Economist Philip Lane warned in an interview that if Middle East tensions persist for a long time and the region’s oil and gas supplies continue to decline, the euro area could face significant upward pressure on inflation, which would also be “negative” for economic growth.

Gold and silver plunge as international oil prices continue to surge

Overnight, London spot gold fell below $5,000 per ounce during trading, with a daily decline of over 4%; London spot silver closed down more than 8%, briefly falling below $78 per ounce. In the futures market, COMEX gold futures declined nearly 4%, with the lowest point during the session just one step away from breaking $5,000 per ounce; COMEX silver fell over 7%, briefly dropping near $78 per ounce.

Furthermore, escalating geopolitical tensions in the Middle East continue to push international oil prices higher. By the close on March 3, WTI crude oil and Brent crude oil front-month continuous contracts both closed up over 5%, with WTI approaching $75 per barrel and Brent reaching a high of over $85 per barrel during the session.

Trump threatens to cut off trade with Spain

According to Xinhua News Agency, U.S. President Trump on March 3 said that Spain does not support the United States in attacking Iran, and he plans to cut off all trade relations with Spain.

That day at the White House, Trump told visiting German Chancellor Scholz that Spain does not agree to increase defense spending to the NATO target of 5% of GDP, and during the U.S. military action against Iran, Spain refused to allow the U.S. to use its military bases—Spain’s attitude was “unfriendly.” Trump threatened, “We plan to cut off all trade relations with Spain, and we do not want any involvement with Spain.”

Spain’s Defense Minister Margarita Robles and Foreign Minister Álvarez, in interviews with Spain’s national television on March 2, stated that the two military bases at Morón–de la Frontera and Rota in southern Spain provided no assistance to the U.S. and will not be authorized for military strikes against Iran.

Additionally, according to a flight-tracking website, since March 1, at least 15 U.S. military aircraft have left these two bases, with some aircraft landing in countries such as Germany.

Spanish government states it has the capacity to respond to U.S. trade threats

In response to U.S. President Trump’s threats to sever trade relations with Spain, the Spanish government on March 3 said that the country has the necessary resources to handle potential impacts, and will support affected industries and promote diversification of supply chains.

Yolanda Díaz, Spain’s Second Deputy Prime Minister and Minister of Labor and Social Economy, criticized Trump’s remarks as “unacceptable,” emphasizing that Spain will not accept external pressure.

Spain’s Defense Minister Margarita Robles and Foreign Minister Álvarez reiterated in interviews with Spain’s national television that the two military bases at Morón–de la Frontera and Rota in southern Spain did not assist the U.S. and will not be authorized for military strikes against Iran.

Iran states it has full control of the Strait of Hormuz; more than ten oil tankers hit by shells

According to Iran’s Fars News Agency, Xinhua reported on March 3 that Mohammad Akbarzadeh, deputy commander of Iran’s Islamic Revolutionary Guard Corps navy, said that the Strait of Hormuz is fully under Iran’s navy control, and more than ten oil tankers in the strait were hit by shells.

Akbarzadeh said that the Revolutionary Guard navy has repeatedly warned that the Strait of Hormuz is in a state of war, and any vessel could be struck by shells or drones. Nevertheless, more than ten oil tankers ignored these warnings, were hit by shells, and were burned.

Akbarzadeh emphasized that after Iran announced a ban on navigation through the Strait of Hormuz, oil tankers, merchant ships, and fishing boats can no longer pass through the strait.