[New York Stock Exchange] Markets Fall on Iran Airstrikes... Oil Prices Surge 7%

Gold Surges Above $5,400 per Ounce During Trading

Airline Stocks Weaken Amid Flight Cancellations

Defense and Oil Companies on the Rise

The New York Stock Exchange opened lower across the board on March 2 (local time) following airstrikes by the United States and Israel against Iran over the past weekend. As Iran attacked U.S. military bases in the Middle East and the region showed signs of a possible full-scale war, international oil prices surged to their highest level in four years, and gold prices briefly surpassed $5,400 per ounce during intraday trading.

As of 10:33 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was down 264.77 points (-0.54%) at 48,713.15 compared to the previous trading day. The S&P 500 index, which focuses on large-cap stocks, fell by 33.87 points (-0.49%) to 6,845.01, while the tech-heavy Nasdaq index dropped 81.01 points (-0.35%) to 22,587.21.

The United States and Israel launched a military operation against Iran, named 'Operation Epic Fury,' on February 28 and have continued airstrikes for a third consecutive day. After Supreme Leader Ayatollah Ali Khamenei and other Iranian leadership figures were killed, Iran retaliated by attacking U.S. military bases in the Middle East.

As a result, oil tanker traffic through the Strait of Hormuz has come to a near standstill, and the shutdown of major oil refineries in Saudi Arabia caused Brent crude prices to jump over 6% to $78 per barrel, while West Texas Intermediate (WTI) crude rose to $71 per barrel. In Europe, prices for liquefied natural gas (LPG) surged more than 40% after Qatar suspended production.

Chris Larkin of Morgan Stanley's E*Trade division analyzed, "Uncertainty over oil prices can play a major role in determining overall market sentiment. If the energy situation stabilizes, there could be positive spillover effects, while concerns over prolonged turmoil could lead to the opposite outcome."

Due to concerns about the energy situation, oil stocks are on the rise. Exxon Mobil and Chevron are up 0.86% and 1.23%, respectively. Amrita Sen, research director at energy analysis firm Energy Aspects, told CNBC in an interview, "Oil prices are expected to remain at around $80 per barrel for the foreseeable future."

She pointed out, "The likelihood of the Strait of Hormuz, through which 13 to 15 million barrels-equivalent to 20% of the world's oil supply-pass, being completely shut down is low. Instead, one-off attacks on ships passing through the area present a greater risk."

As risk aversion rises, gold futures prices are up 2%. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as the market's "fear index," is nearing 22, reaching its highest level so far this year.

Defense stocks are also on the rise following news of the airstrikes on Iran. Lockheed Martin and Northrop Grumman have soared by 3.02% and 4.48%, respectively. Patrick O'Donnell, Chief Investment Strategist at Omnis Investment, noted, "Currently, investors are grappling with a very uncertain situation. The stock market shows some uncertainty about how prolonged developments might affect economic growth and inflation."

In contrast, as major Middle Eastern countries closed their airspace and airlines decided on large-scale flight cancellations, airline stocks weakened. Delta is down 3.03%, American Airlines is down 5.04%, and United is down 4.10%.

Most large-cap stocks are also trending downward. Only Nvidia (+2.23%), Microsoft (+1.47%), and Meta (+0.73%) are rising, while Alphabet A (-2.28%), TSMC (-1.67%), Apple (-0.96%), and Eli Lilly (-1.46%) are seeing notable declines.

This content was produced with the assistance of AI translation services.