Early Morning! Strait of Hormuz, Breaking News! US Stocks Launch Major Counterattack, Crude Oil Plummets

The Iran-U.S. situation has completely shaken the global financial markets.

Due to signs of easing in the Middle East situation, all three major U.S. stock indices closed higher overnight, with gains exceeding 1%. European stock markets also rose collectively, while international oil prices plummeted sharply, with WTI and Brent crude oil futures dropping over 14% intraday. Analysts pointed out that a series of remarks by U.S. President Trump eased market fears of further escalation, with the VIX fear index falling more than 2%.

Currently, the latest developments in the Strait of Hormuz are also drawing market attention. Early this morning, according to CCTV News, a spokesperson from Iran’s Hatam Anbia Central Command announced that Iran has taken the initiative in relevant waters of the Persian Gulf and Oman Gulf and has effective control over the Strait of Hormuz. Iran does not need to lay mines in the Persian Gulf but will take all necessary measures to ensure security when needed.

Full Counterattack

On March 24, Eastern Time, the three major U.S. stock indices all closed higher, though gains narrowed from earlier in the session. The S&P 500 rose 1.15%, the Nasdaq increased 1.38%, and the Dow gained 1.38%.

Large-cap tech stocks in the U.S. rose across the board, with Broadcom surging over 4%, Amazon up more than 2%, Nvidia, Apple, and Meta rising over 1%, and Google and Microsoft closing slightly higher.

Popular Chinese concept stocks also rallied, with the Nasdaq Golden Dragon China Index up 0.86%, ending a four-day losing streak. Xpeng Motors and NIO both surged over 7%, Futu Holdings jumped over 3%, Alibaba rose nearly 3%, Li Auto gained over 2%, Pinduoduo, JD.com, Baidu, Ctrip, and Bilibili all saw modest gains.

European markets also rebounded across the board. By the close, the STOXX 50, Germany’s DAX 30, and Spain’s IBEX 35 all rose over 1%, while France’s CAC 40 and Italy’s FTSE MIB increased by 0.79% and 0.81%, respectively.

International oil prices also fell sharply. WTI May crude futures closed at $88.13 per barrel, down 10.28%, and Brent May crude futures closed at $99.94 per barrel, down 10.92%.

On the news front, CCTV News reported that President Trump announced productive talks with Iran’s leadership, leading him to delay the attack by five days.

Subsequently, Trump stated that the U.S. is in negotiations with Iran to see if a broader agreement can be reached. Trump said, “This time, Iran is serious; they want to make peace. The U.S. has cleared all targets within Iran, including its leadership.”

Trump also said Iran has one last chance to end its threats against the U.S. The world will soon become safer.

Israeli Prime Minister Netanyahu said in a video speech on the evening of the 23rd that Trump indicated that a “war goal” against Iran could be achieved through “an agreement.” However, Netanyahu also stated that Israel will “continue airstrikes against Iran and Lebanon.”

In response, Iran’s Parliament Speaker Ali Larijani posted on social media denying any negotiations with the U.S., calling it “fake news” used to manipulate the financial and oil markets.

Chris Larkin, head of trading at Morgan Stanley’s E*TRADE, said, “The market has been awakened by some potential good news, but for a rebound to be sustained, there may need to be real progress on the geopolitical front. We still live in a market dominated by headlines.”

Goldman Sachs trader Rich Privorotsky pointed out that Trump’s actions over the past 72 hours follow a fixed pattern: on Friday, signals of “considering contraction” are released; on Saturday, the tone hardens; and on Monday, a “pause for five days” is announced. Tensions are created first, then deadlines are set, and finally, steps are taken to “step down” in exchange for internal propaganda gains.

Bloomberg macro strategist Michael Ball noted that the rebound of the S&P 500 on Monday did not change the core issue: high oil prices boost inflation expectations, which could lead the Federal Reserve to remain on hold and tighten financial conditions.

Iranian Military: Effective Control of the Strait of Hormuz

Regarding the situation, CCTV News reported that a spokesperson from Iran’s Hatam Anbia Central Command said Iran has taken the initiative in waters of the Persian Gulf and Oman Gulf and has effective control over the Strait of Hormuz. The spokesperson stated that based on current control capabilities, Iran does not need to lay mines in the Persian Gulf but will take all necessary measures to ensure security when needed. He also said Iran’s armed forces have the ability, with regional cooperation, to maintain security in the Persian Gulf, and foreign countries have no right to intervene.

During the U.S. stock market’s late trading hours, reports indicated that thousands of U.S. Marines are expected to arrive in the Middle East by Friday. Among them, the amphibious assault ships USS LHD-1 “America” and USS New Orleans, previously deployed in the Asia-Pacific region, along with about 2,200 U.S. Marines from the 31st Marine Expeditionary Unit, will enter the jurisdiction of U.S. Central Command on Friday. It was also noted that it may take several more days for these forces to reach the Strait of Hormuz.

Trump told the media he hopes the Strait of Hormuz can be reopened soon. When asked who will control the strait, Trump replied, “Maybe me,” adding that Iran’s new leadership will also play a role in managing this critical global waterway.

Brock Weimer of Edward Jones said the most convincing risk-averse signal would be the actual flow of oil through the Strait of Hormuz returning to normal, rather than verbal statements.

Bob Doll, Chief Investment Officer at Crossmark Global Investments, said, “Nothing is more important in the short term than oil prices — when oil prices fall, stocks rise, and vice versa.”

According to CCTV News, a military source in Iran stated that Iran has prepared new “surprises” for the coming days, which could have “significant effects.”

The source indicated that Trump’s “all military options have failed,” and he is seeking a way out, thus dragging the conflict from the battlefield into social media.

The source also said Trump is aware that his military options are in “very poor shape,” unable to achieve victory or reopen the Strait of Hormuz, and is resorting to rhetoric, which will only make him “more embarrassed.”

He emphasized that, contrary to Trump’s hollow promises, Iran has prepared “surprise actions” for the coming days that will clarify the outcome of the conflict.