Brent crude surpasses $100 amid U.S.-Iran conflict... New York stock market opens lower

[Financial News] The New York stock market opened lower across the board as international oil prices surpassed $100 per barrel due to escalating geopolitical tensions in the Middle East. Investor sentiment appears to have frozen rapidly as armed conflict between the U.S. and Iran intensifies, compounded by concerns over a potential logistics blockade surrounding the Strait of Hormuz.
 
As of 9:30 a.m. on the 9th (local time), the Dow Jones Industrial Average (DJIA) on the New York Stock Exchange (NYSE) recorded 52,470.35, down 315.72 points (0.60%) from the previous close. The S&P 500 Index fell 23.89 points (0.31%) from the previous close to 7,649.63, and the NASDAQ Composite Index dropped 114.41 points (0.43%) to 26,307.01.

The biggest negative factor weighing down the market today was the skyrocketing international oil prices. November delivery of Brent crude, the global benchmark, surged to an intraday high of $100.95 on the London ICE exchange, surpassing the $100 mark again for the first time in about two months since last July. On the New York Mercantile Exchange (NYMEX), October delivery of West Texas Intermediate crude oil (WTI) is also trading at $95.93 per barrel, up 3.12% from the previous session.
This is because the military conflict between the United States and Iran has been spiraling out of control over the past two days. After the United States Central Command (USCENTCOM) announced the previous day that it had destroyed five Iranian oil tankers near the Gulf of Oman in retaliation for Iran’s attack on U.S. naval vessels, Iran retaliated by claiming to have struck U.S. military bases in Jordan and attacked 10 merchant ships near the Strait of Hormuz.
Concerns over the collapse of the global crude oil supply chain reached a peak, particularly as the Iranian Revolutionary Guard Corps (IRGC) expanded its maritime control zone to include parts of the Gulf of Oman and the Arabian Sea and warned that it would suspend shipping and insurance services for all vessels passing through the area.

Major foreign media outlets and investment banks analyzed that soaring oil prices are undermining the upward momentum of the stock market. Peter Cardillo, Chief Market Economist at Spartan Capital Securities, assessed, "The biggest issue in the market today is by far oil prices, and this is blocking the stock market rally."
By sector, energy and some technology stocks showed strength, benefiting from rising international oil prices, but consumer goods and finance, which are sensitive to inflationary pressures, remained weak.
Among the featured stocks, Meta Platforms rose 4.25% on news of the launch of its new AI agent, 'Muse,' while jewelry retailer Signet Jewelers surged 18.73% after announcing second-quarter adjusted earnings per share ($2.19) that significantly exceeded market expectations ($1.74). On the other hand, chemical company Dow Inc. rose 2.54% following reports that it is considering withdrawing from its $20 billion partnership with Saudi Aramco, resulting in a stock-specific market driven by individual issues.
Meanwhile, the market is closely watching the scale of the U.S. Treasury buyback to be announced today. JPMorgan Chase stated, "Investors are looking forward to clearly confirming the actual amount of liquidity the Treasury will purchase through this announcement."
[email protected] Park Ji-hyun Reporter