New York stock market falls in sync with rising tensions between the US and Iran and surging oil prices

The major indices of the New York stock market opened lower due to rising international oil prices caused by the full-scale war between the U.S. and Iran. The energy crisis has weakened investor sentiment.

On the morning of the 19th local time, the Dow Jones Industrial Average fell 370.15 points to close at 45,855.00. The S&P 500 and Nasdaq Composite also declined by 46.34 points and 199.75 points respectively, causing significant concern among investors. Especially with Brent crude oil prices breaking above $100 and attacks on Middle Eastern energy facilities, market anxiety has intensified.

The situation stems from attacks and retaliations between Iran and Israel. Israel’s airstrikes damaged major Iranian gas fields and refining facilities. In response, Iran attacked Qatar’s liquefied natural gas production facilities. Under these circumstances, U.S. President Donald Trump warned that any further attacks on facilities within Qatar would be met with strong retaliation, escalating tensions in the Middle East.

Meanwhile, the Federal Reserve’s decision to keep the benchmark interest rate unchanged and Chairman Jerome Powell’s hawkish remarks also impacted the markets. The Producer Price Index for February exceeded expectations, and concerns about stagflation further pressured stocks. These economic indicators fueled market expectations that the Fed will tighten monetary policy aggressively to curb inflation.

Amid these combined factors, major European stock markets also declined, while international oil prices rose. Such market volatility is likely to persist, especially given the ongoing military tensions in the Middle East and the resulting instability in energy markets, which are expected to remain key variables influencing the global economy.