Major U.S. stock indices kicked off the trading day with widespread declines as crude oil prices surged past the $100 mark, driven by escalating tensions between the U.S., Israel, and Iran.
New York Markets Open Lower
The Dow Jones Industrial Average fell 1.69% to 46,698.65. The Nasdaq Composite dropped 1.14% to 21,133.2, while the S&P 500 declined 1.37% to 6,647.37. Investor sentiment soured amid fears of supply disruptions in the oil market.
Oil Prices Hit Supply Ceiling
Crude oil climbed to $119.48 per barrel, reflecting heightened geopolitical risks. Delta Airlines shares tumbled more than 5% on rising fuel cost concerns. Large-cap semiconductor firms also slid over 4%, with investors shifting toward safe-haven assets like the U.S. dollar and away from riskier investments. Even precious metals weakened, as Newmont, the world’s top gold producer, saw its stock drop over 4%.
Pharma Sector Hit by Lawsuit News
Hims & Hers Health plunged 38% after Novo Nordisk filed a patent infringement lawsuit related to Wegovy sales. The company had previously offered Novo Nordisk products through its platform, a partnership now under legal scrutiny.
European Markets Follow Suit
European bourses mirrored the downturn. The Euro Stoxx 50 index fell 1.76% to 5,619.43. Britain’s FTSE 100 declined 1.37%, and France’s CAC 40 shed 2.18%. Germany’s DAX bucked the trend, rising 1.87%.
WTI Crude Surges on Geopolitical Fears
West Texas Intermediate (WTI) crude for April delivery jumped 14.32% to $103.92 per barrel. In Iran, recent remarks by Ayatollah Ali Khamenei on Hamas hostages, combined with hardliner Mojtaba Khamenei’s stance, have amplified investor worries over a prolonged conflict and potential supply interruptions.
