Oil rally, stock market panic and falling gold: results of the sixth day of the war

Major U.S. stock market indices collapsed on Thursday, March 5, failing to hold Wednesday's gains. Fears around the war with Iran intensified after it became known about strikes on several oil tankers. This triggered a panic sell-off, the price of oil jumped and the fear index soared. By the close of trading, the fall in stocks and the oil rally had slowed - in anticipation of a possible announcement of measures to curb energy prices by the US Treasury Department.

The closure of the Strait of Hormuz, a bottle neck for global oil trade, is a "black swan," Steve Sosnick of Interactive Brokers told Bloomberg. He said it's surprising that investors realized the gravity of the situation only by Thursday.

- The blue-chip index Dow Jones Industrial Average fell by 1.6% on March 5. At the low of the day it was losing more than 2%.

- The S&P 500 broad market index was down 0.56%.

- The technology sector index Nasdaq Composite fell by 1.1% during the session, but by the close it recovered some of its losses, remaining down 0.3%.

- The Russell 2000 index of small-cap stocks collapsed 1.9%.

- WTI crude futures were up 8% at the moment, surpassing $80 per barrel, the highest level since August 2024, according to Bloomberg calculations . Brent contracts added about 5%, trading above $85 a barrel. By the close, prices for both Marks had slightly reduced their decline.

- Gold, a traditionally protective asset, also became cheaper. It lost about 0.9% of its value. The price of bitcoin fell by 2.4%.

- The CBOE VIX Volatility Index, also called the Wall Street Fear Index, rose 11.9% on the day to close at 23.66 points. It climbed as high as 25 during the session. The psychologically important level indicating high market volatility is 20 points.

Oil futures jumped after Iran announced a missile attack on a tanker and the media reported at least two oil ships were hit. By the evening, the price rise had slowed slightly and stock prices began to recover in reaction to a Reuters publication. Its sources said that the U.S. Treasury Department may announce additional steps aimed at curbing the rise in energy prices as early as Thursday. These measures may include actions on the oil futures market, a senior White House official said. Reuters called the attempt to influence prices through financial markets rather than physical supplies unusual.

U.S. President Donald Trump confirmed that further measures are expected to ease pressure on oil prices, Bloomberg reports. On Tuesday, he promised to provide risk insurance for tankers. According to him, if necessary, the vessels will be escorted by US Navy ships.

"Everything is being considered," U.S. Interior Secretary Doug Bergam said in an interview with Bloomberg, adding that the list of possible steps includes releasing oil from the U.S. Strategic Petroleum Reserve - the world's largest stockpile of crude in underground storage - in coordination with other countries to amplify the effect. So far, however, authorities have not decided to use the reserve. Analysts and other experts in Washington are talking about possible additional tools the administration may consider, including temporary relaxations of fuel blending requirements, Bloomberg writes.

The news is supplemented.

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