U.S. stocks opened trading lower amid escalation over Iran

U.S. stocks opened the main trading session on April 13 with a drop after the failure of U.S.-Iran talks over the weekend.

- The blue-chip index Dow Jones Industrial Average fell 0.8% after the opening of trading.

- The S&P 500 broad market index and the Nasdaq Composite technology sector index were losing 0.3 percent each.

- The CBOE Volatility Index, called the Wall Street Fear Index, was up nearly 8% to 20.8 points. The psychological mark indicating increased volatility is considered to be 20 points.

- The price of Brent crude oil with delivery in June at the time was up 6.7% to $101.9 per barrel, while the price of U.S. WTI crude was up 7% to $103.57 per barrel.

- Spot gold prices were down 0.4% to $4733 a troy ounce.

- Bitcoin was up 2 percent to $71,092, the CoinGecko service shows.

After talks with Iran failed on April 11, the U.S. threatened to block all Iranian ports. In response, Tehran said it would strike all ports in and near the Persian Gulf if its own sea hubs were threatened, intensifying the standoff around the Strait of Hormuz, Bloomberg writes.

The security of ports in the region "is either ensured for all or none," Iran's armed forces said in a statement quoted by the state-run IRIB News agency. A US threat to close the strait would be considered an "act of piracy," Tehran stressed, adding that it intends to maintain control over the key waterway even after the war ends.

"Investors are being forced to reassess the fair value of stocks as it becomes clear that the conflict in the Middle East has no quick end in sight. The Strait of Hormuz is a key driver for oil prices and overall market sentiment, and it's clear that the standoff between the U.S. and Iran over this route will only intensify this week," CNBC quoted Bellwether Wealth President and Chief Investment Officer Clark Bellin as saying.

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