Full-scale war between the US and Iran causes oil prices to soar, leading to a global stock market crash

The full-scale war between the United States and Iran has caused oil prices to surge, leading major stock indices on the New York Stock Exchange to open lower. This situation has dampened investor sentiment and negatively impacted the overall stock market.

On March 9, the Dow Jones Industrial Average fell 1.69% from the previous trading day, closing at 46,698.65 points; the S&P 500 and Nasdaq Composite also declined by 1.37% and 1.14%, respectively. The main reason for this was the rise in international oil prices, which temporarily soared to $119.48 per barrel. This increase in oil prices is further fueling concerns about rising inflation.

Currently, Iran has elected hardline politician Morteza Hameini as the successor to Ayatollah Khamenei, raising expectations that the war could become prolonged. This has amplified market fears that the conflict will not end easily. Especially after last month’s employment data came in well below expectations, concerns about stagflation—simultaneous economic recession and rising prices—have intensified.

In terms of industry performance, only the energy sector remains strong, while others are all in decline. For example, airline stocks have fallen sharply due to increased fuel costs driven by rising oil prices. Delta Air Lines and Norwegian Cruise Line saw their shares drop more than 5% and 6%, respectively. Conversely, remote healthcare platform Hims & Hers experienced a surge in stock price after withdrawing patent lawsuits and exploring new business opportunities.

European markets showed similar trends. Major European indices—the Euro Stoxx 50, UK FTSE 100, France’s CAC 40, and Germany’s DAX—all declined. This indicates that the tense international atmosphere is affecting European markets as well.

The current situation recalls the stagflation of the 1970s. As Ed Yadni, Chief Investment Strategist at Yedni Research, pointed out, as long as this oil shock persists, the Federal Reserve will likely face difficult choices between inflation risks and rising unemployment. Close attention should be paid to international developments and oil price movements moving forward.