Dow at its lowest since December, Brent above $92, Oracle holds Nasdaq: results of the 12th day of the war

Stocks in the U.S. mostly fell in price on Wednesday, March 11, due to a renewed rise in oil prices, with Brent rising more than 5% to above $92 a barrel. This is despite the International Energy Agency announcing the release of 400 million barrels of oil, the largest use of reserves in history, CNBC wrote. The UK said at least three ships were damaged near the Strait of Hormuz, and oil storage facilities in Oman were attacked by drones.

- The blue-chip index Dow Jones Industrial Average fell 0.6% on Wednesday - or 289 points. It closed at 47,417.27 points - the lowest level since early December 2025.

- The S&P 500 broad market index was down 0.08%.

- The Nasdaq Composite index of the technology sector was the only one that managed to rise, albeit by an insignificant 0.08%. It was supported by Oracle shares, which rose by 9.2% after the successful report. Uber shares jumped by 3.6%.

- The VIX index, known as the Wall Street Fear Index, lost 2.8% to 24.23 points. The index remains above the psychological mark of 20 points, indicating increased volatility.

- WTI and Brent crude futures were up more than 5 percent at the close of trading in New York to about $88 and $92.5 per barrel, respectively.

- Spot prices for gold were declining by 0.3%. Silver was getting cheaper by 2.8%.

- Bitcoin was trading at around $70,500 - with no pronounced momentum.

Despite the International Energy Agency (IEA) announcing the release of 400 million barrels of oil - the largest use of reserves in history - Brent was up 6% in trading on Wednesday, with the price climbing to $93.15 per barrel. Traders fear supply disruptions due to the Gulf War. The protracted conflict may keep oil prices at elevated levels, CNBC writes.

The UK Maritime Trade Operations (UKMTO) and the country's UK Maritime Trade Operations Center said Wednesday that three cargo ships were attacked in the Persian Gulf and the Strait of Hormuz. Salalah Port in Oman suspended operations after a drone strike on fuel storage facilities.

U.S. commanders said on Tuesday that the United States had sunk several Iranian vessels, including 16 minesweepers, off the Strait of Hormuz. That Iran was mining this crucial artery for the global oil market was reported by CNN and Reuters, citing sources. US President Donald Trump claimed that the White House had no such data, but threatened Tehran with consequences if it turned out to be true and the mines were not removed.

Trump is preparing to invoke emergency powers given to U.S. presidents dating back to the Cold War to pave the way for the resumption of oil production off the southern California coast and thus alleviate the global supply shortage in the oil market, Bloomberg writes.

Investors also continue to follow statistical data. The consumer price index (core CPI) in February rose by 2.4% in annualized terms. This coincided with the forecast of economists surveyed by Dow Jones, writes CNBC. The report came amid signs of a weakening labor market that have been growing in recent months. Core inflation slowed from the previous month, which eased price pressures slightly even before the war with Iran began, Bloomberg notes. However, new risks from the conflict, which has already pushed up energy prices, could reignite concerns about the affordability of goods and services for consumers, the agency writes.

The bright spot in the market on Wednesday was Oracle shares, which jumped 9% after the software developer's quarterly earnings and revenue beat analysts' expectations. The company also raised its revenue forecast for fiscal 2027, showing that its investments in AI infrastructure are starting to bear fruit.

- The IEA's decision to release reserves "does not address other issues that will affect the global economy," Laird Norton Wetherby investment director Ron Albahari told CNBC. He cited oil products that pass through the Strait of Hormuz, including jet fuel, as an example. "I think the market is now trying to figure out where the path to de-escalation is even here," he noted. - Both sides [the U.S. and Iran] have taken a tough stance, and in the short term it's hard to see how this can all end positively."

- "Investors don't seem to be convinced that [tapping strategic oil reserves] will have the desired effect and probably expect the flow of oil through the Strait of Hormuz to remain effectively shut," Forex.com's Fawad Razaqzada told Bloomberg.

- "Trump's statements that the war could end soon, following an extraordinary spike in oil market volatility, in our view could mean his 'pain threshold' has already been reached," Emmanuel Kau, head of European equities strategy at Barclays, wrote Wednesday in a note quoted by CNBC. - The longer the oil price spike persists, the greater the risk that corporate earnings and equity valuations will decline."

- While investors are now much more focused on how the conflict with Iran will affect inflation in the coming months, the latest data does provide some reassurance: before the recent energy shock, price pressures were not moving in an undesirable direction, Principal Asset Management 's Xi Sha explained to Bloomberg. "Historically, the Fed has typically not reacted to price spikes caused by rising energy costs," she noted. - But after keeping inflation above target for nearly five years, it may be harder to ignore such a spike this time around." Sha's baseline scenario still assumes two rate cuts in the second half of the year, although that forecast would be jeopardized if energy prices remain high and the conflict drags on, Bloomberg writes.

- The Fed is likely to resume rate cuts as early as June, although there is a risk that the next move will be delayed by the war-induced oil shock, Bloomberg quotes Michael Gaypen of Morgan Stanley as saying.

This article was AI-translated and verified by a human editor