Financial Markets React to Geopolitical Tensions Following Presidential Address

Financial markets experienced significant declines following a presidential address on Wednesday that indicated continued military action against Iran. U.S. crude oil prices surpassed $110 per barrel, reversing a previous trend where prices had been approaching $100. Major U.S. stock indices all fell substantially: the S&P 500 dropped 1.1%, the Dow Jones Industrial Average lost 545 points (1.2%), and the Nasdaq composite declined 1.6%. The sell-off was broad, affecting approximately 75% of stocks in the S&P 500. This downturn extended beyond U.S. markets, with major indexes in Europe and Asia also recording losses. The market movement was primarily driven by concerns over oil supply disruptions, as shipping traffic has been significantly reduced in the Strait of Hormuz, a critical passage for global oil trade. Despite the mid-week decline, major indexes were still positioned to end the week with overall gains, reflecting earlier optimism about a potential resolution to the conflict. Trading concluded for the week on Thursday due to the Good Friday market closure.